Taxes, Retirement, and Other Insurance Concepts Flashcards
principle under which it is assumed that the funds paid into the policy first will be paid out firs
FIFO
principle applied to asset management in life insurance products, wnder which it is assumed that the funds paid into the policy last will be paid out first
LIFO
maturity date
Policy endowment
the right of a participant in a retirement plan to retain part or all of the benefits
vesting
legal term used to identify an individual or entity that is not an insured under the contract, but that has legally enforceable right under it
third party ownership
most third party contracts are written fro
business or minors
allow someone living with a life threatening condition to sell thier existing life insurance policy and use the proceeds when they are most needed, before their death
viactical settlements
in viactical settlements, the insured is known as
viators
in viactical settlements, a ____ is a person other than the viator that enters the contract
provider
in a viactical settlement, who represents the providers?
producers
in a viactical settlement, who represents the insureds?
brokers
refers to any financial transaction in which the owner of a life insurance policy sells a life insurance policy to a third party for some form of compensation, usually cash
life settlement
refers to any activity relating to the solicitation and sale of a life settlement contract to a third party who has no insurable interest in the insured
business of life settlement
refers to the owner of the life insurance policy who seeks to enter into a life settlement contract
owner
establishes the terms under which the life settlement provider will pay compensation to the policyowner, in return for the assignment, transfer, sale, or release of any portion of the death benefit, policy ownership, beneficial interest, or interest in a trust
life settlement contract