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14 Cards in this Set
- Front
- Back
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Life insurance |
protects your loved ones against the possibility that you may die too soon |
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Life insurance |
the primary reason for buying life insurance is to allow your family members to continue with their lives free from the financial burden that death can bring |
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Life insurance |
life insurance policy is the written contract between the insurer and the policyholder |
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Named parties in the policy |
insured
owner (or policyholder)
beneficiary
contingent beneficiary |
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Consider life insurance if |
you have dependents who count on you financial support
if you have debts you would like to clear, like home mortgage
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you may not need life insurance if |
no one depends on your support
you are a child |
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multiple-of-earnings method |
multiple annual earnings by an arbitrary number |
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Needs based method |
estimate needs and examine
-Available resources (better method)
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Term Life Insurance (or Pure Protection) |
face amount
time periods
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Cash-Value Life Insurance |
Cash-value: represents the value of the investment element in the life insurance policy |
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Types of life insurance |
whole life insurance
universal like insurance
variable life insurance
variable universal life insurance |
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Lives Covered |
first-to-die policies
survivorship joint life policy |
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Key Features |
Lives covered
The incontestability Clause
The suicide Clause
Grace period
Lapsed Policy
Multiple Indemnity |
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Buying Life insurance ` |
know the amount and type of coverage you need
compare costs and features
select a large, highly rated, financially secure company
select a reputable agent |
