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15 Cards in this Set

  • Front
  • Back
nonparticipating policy
life insurance that does not provide policy dividents; also called a nonpar policy
participating policy
life insurance that provides policy dividents; also called a part policy
term insurance
life insurance protection for a specified period of time; sometimes called temporary life insurance
whole life policy
an insurance plan in which that policyholder pays a specified premium each year for as long as he or she lives; also called a straight life policy, a cash-value life policy or an ordinary life policy
cash value
the amount received after giving up a life insurance policy
universal life
a whole life policy that combines term insurance and investment elements
beneficiary
a person designated to receive something such as life insurance proceeds, from the insured
nonforfeiture clause
a provision that allows the insured not to forfeit all accrued benefits
incontestability clause
a provision stating that the insurer cannot dispute the validity of a policy after a specified period
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
rider
a document attached to a policy that modifies its coverage
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
chartered life underwriter (CLU)
a life insurance agent who has passed a series of college-level examinations on insurance and related subjects
interest-adjusted index
a method of evaluating the cost of life insurance by taking into account the time value of money
annuity
a contract that provides a regular income for as long as the person lives