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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
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
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
a contract that provides a regular income for as long as the person lives