Examfx Terms to Understand C1.2

Cash Value

A policy's savings element or living benefit

Suitability

A requirement to determine if an insurance product is appropiate for a customer

Qualified Plan

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

Nonforfeiture Values

Benefits in a life insurance policy that policyowners 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

Contracys that offer guaranteed minimum or fixed benefits

Liquidation of an Estate

Converting a person's net worth in to a cash flow

Securities

Financial instruments that may trade for value (i.e stocks, bonds, options)

Policy Maturity

In life policie, the time when the face value is paid is paid out

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

Attained Age

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

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