Risk Management Flashcards
Residual disability benefit
a prorated amount of total disability, if you go back to work in a lower risk capacity and your income drops because of it, you will still get insurance benefits regardless of how much you’re earning.
Long term care insurance
when you have cognitive impairment or can’t do one of the six: bath, dress, eat, toileting, continence (can’t control bowel or bladder) or transferring position
Broad form insurance
covers all risk on the house and named perils on its contents
Standard insurance
covers named perils for both house and content
Comprehensive insurance
covers all risk on both home and content
robbery
when use of force occurs
burglary
when someone forces their way in to steal the item
defrauded
when someone scams you
theft
when no force of entry or force is used to steal
what happens when transferring a policy to an adult child
taxable capital gain must be reported by the policy holder
how much can you borrow against a whole life policy?
90% of the cash value
A prescribed annuity
it spreads out the tax liability across the life of the annuity ensuring equal payments over its life.
presumptive disability
total disability- loss of speech, sight, hearing, two limbs
determining amount of life insurance needed
last expenses, debts, special bequests, education, support of spouse or dependents
non-forfeiture options
automatic premium loan- the laon will pay for premiums
cash surrender- cash out and cancel policy
reduced paid up insurance- exchange cash value for paid up for a smaller death benefit
extended term insurance- exchange cash value for term policy
