Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
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
|
