Primerica Chapter 2 Terms

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

3 basic types of term coverage

-Level -Increasing -Decreasing

Suitability

A requirement to determine if an insurance product is appropriate for a costumer

Qualified Plan

A retirement plan that meets IRS guidelines for receiving favorable tax treatment

Joint Life Policy

A single policy that is designed to insure two or more lives -The premium is based on a joint average age that is between the ages of the insured's -The death benefit is paid upon the first death only

Survivorship life

Also known as "second-to-die" or "last survivor" policy -insures two or more lives for premium that is based on a joint age -pays on last death rather than upon the first death

Universal life

Also known by "flexible premium adjustable life"

Nonforfeiture Values

Benefits in a life insurance policy that the policyowner cannot lose even if the policy is surrendered or lapses

Variable Life Insurance

Contracts in which the cash values accumulate based upon a specific portfolio of stocks without guarantees of performance

Fixed Life Insurance

Contracts that offer guaranteed minimum or fixed benefits

Liquidation of an estate

Converting a person's net worth into a cash flow

Single Premium Whole Life (spwl)

Designed to provide a level death benefit to the insured's age 100 for a one time lump sum payment -The policy is completely paid up after one premium and generates immediate cash

Securities

Financial instruments that may trade for value (ex: stocks, bonds, options)

Policy Maturity

In life policies, the time when the face value is paid off

Option B (Increasing Death Benefit option)

Includes the annual increase in cash value so that the death benefit gradually increases each year by the amount that the cash value increases -The total death benefit will always be equal to the face amount of the policy plus the current amount of cash value

Target premium

Recommended amount that should be paid on a policy in order to cover the cost of insurance protection and to keep the policy in force throughout its lifetime

Term Life

Temporary protection (pure life insurance)

Minimum premium

The amount needed to keep the policy in force for the current year

Face Amount

The amount of benefit stated in the life insurance policy

Endow

The cash value of a whole life policy has reached the contractual face amount

Option A (Level Death Benefit option)

The death benefit remains level while the cash value gradually increases, thereby lowering the pure insurance with the insurer in the later years

Attained Age

The insured's age at the time of the policy is issued or renewed

Cash Value

The policy's savings element or living benefit

Level premium

The premium that does not change throughout the life of a policy

Deferred

Withheld or postponed until a specified time or event in the future


Kaugnay na mga set ng pag-aaral

Chapter 7: Interpreting Weather Data

View Set

Cold War, Decolonization, and Chinese Communism (Strayer Chapter 13 - Unit 8) (Not Done ALN)

View Set

Info Tech 1st Semester Exam Review

View Set

PEDS: Chapter 3 Growth and Development of the Newborn and Infant

View Set