Life Insurance Flashcards
1
Q
What needs are NOT covered by term assurance?
A
Protection against medical cost
Income protection
Pension
Death after retirement
Long-term care or disability
Physical possessions
2
Q
Define renewable
A
Short-term and the cover is only purchased for a 12 month period
3
Q
Define reviewable
A
The insurer can change the premiums and benefits of the policy upon renewal - policyholder has the choice of whether to accept the new terms or let cover end
4
Q
Defind DB funds
A
benefits independent of contribution payable
benefits not directly related to investment income made
5
Q
Define DC funds
A
benefits depend on the contribution paid into the scheme from that member
increased by investment return earned
