M_F102_Life products Flashcards
Immediate Annuity
- Pays out a regular benefit from the start of the contract for as long as the insured is alive.
Deferred Annuity - needs met by the product
- Pays out a regular benefit provided insured is alive at the end of the deferred (vesting) period.
Group Life Products
Typically sold to a group that originated for reasons other than insurance e.g. a company’s employee group.
Group life Risks and capital requirements similar to individual life contracts
- Key difference is usually reduced anti-selection risk due to compulsory basis.
Group risk products short term with premium rates reviewable annually.
- Group risk contracts available that provide benefits on death, disability and critical illness.
- Key product design and reserving differences compared to long term individual life contracts.
Typically sold to a group that originated for reasons other than insurance e.g. a company’s employee group.
- May be paid by the employer or may be paid by the employee via the employer e.g. direct payroll deductions.
WLA Capital
-Capital similar to endowment assurance
TA Risk
Risk of higher than expected mortality;
selective withdrawals;
early withdrawals;
expense risk
TA Capital
Capital requirements usually quite small.
TA Capital
Capital requirements generally higher than basic term assurance.
Group Life Products
Group risk products short term with premium rates reviewable annually.
Group Life Products
Risks and capital requirements similar to individual life contracts
Group Life Products
Group annuities may be offered by the retirement fund for it’s members.
Deferred Annuity - needs met by the product
-Single premium or regular premiums may be paid during vesting period.
Group Life Products
Group savings products typically used as a vehicle for employee’s to save for retirement.
