Insurance Flashcards
Presumptive Disability Provision
covers you for disability even if you can work, but you become blind, deaf, mute, lose a limb
Regular, any, own occupation definition
Own occupation: for professionals such as doctors. If you can’t do your specific job, you are covered.
Regular: If you can’t do a job that fits within your normal range of skills, education & experience
Any: Covers you if you can’t do any job at all
Risk Retention
Getting no insurance, retaining the risk yourself
Risk Transfer
Transferring the risk to someone else (ie. insurance company) - so, in other words, buying insurance.
Risk Avoidance
Avoiding the risk altogether. Ie, not driving to avoid an accident claim.
Exempt vs non-exempt insurance
Exempt is exempt from tax (up to a maximum specified by the policy) - and the beneficiary will receive it tax free
Do you require a medical check if you have convertible insurance?
No
When would be it be good to get future earnings protection provision on disability insurance?
When you are just starting a business, or when profits are projected to grow in the future
Are life insurance proceeds taxed?
No
At what governmental level is insurance regulated?
Federally
Are individual life insurance policies portable?
Yes
Do group segregated funds provide a guaranteed death benefit?
No
What gets paid out at death on a universal policy?
Face amount plus investment amount.
What is the convertible feature on a group insurance policy?
Can convert after retiring without evidence of insurability.
What is the guarantee % for segregated funds?
75% if held to maturity.
