{personal finance ch 12
annuity
A contract that provides a regular income, typically for as long as the person lives.
chartered life underwriter
A life insurance agent who has passed a series of college level examinations on insurance and related subjects
suicide clause
A provision stating that if the insured dies by suicide during the first two years the policy is in force, the death benefit will equal the amount of the premium paid.
nonforefeit
A provision that allows the insured not to forfeit all accused benefits
whole life policy
An insurance plan in which the policyholder pays a specified premium each year for as long as he or she lives; also called a straight life policy, cash-value life policy, or ordinary life policy.
double indemnity
a benefit under which the company pays twice the face value of the policy if the insured's death results from an accident
rider
a document attached to a policy that modifies its coverage
interest adju
a method of evaluating the cost of life insurance by taking into account the time value of money
beneficiary
a person designated to receive something, such as life insurance proceeds, from the insured
incontestability clause
a provision stating that the insurer cannot dispute the validity of a policy after a specified period
universal life
a whole life policy that combines term insurance and investment elements
term insurance
life insurance protection for a specified period of time; sometimes called temporary life insurance
nonparticipating policy
life insurance that does not provide policy dividends; also called a nonpar policy
participating policy
life insurance that provides policy dividends; also called a par policy
cash value
the amount received after giving up a life insurance policy
underwriting
the process that insurance companies use to determine the premiums that will be charged and whom they will insure