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11 Cards in this Set
- Front
- Back
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What is the primary purpose of life insurance? |
to protect someone who is dependent on you from financial loss related to your death |
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What is life insurance used for? |
- lump-sum payments - income replacement - estate purposes |
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What are the uses of life insurance other than protection from financial loss? |
- pension maximization - charitable giving - wealth transfer - estate preservation - tax sheltering |
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What are the types of life insurance? |
term and permanent |
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What are the characteristics of term life insurance? |
- used for specific temporary need - renewability option - conversion option |
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What is permanent life insurance? |
provides life insurance for as long as you live |
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When is whole life insurance used for? |
estate costs capital gain taxes on investments at death leaving a legacy |
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What is a person's most valuable asset? |
ability to earn an income
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What is disability income insurance? |
- provides payments to replace income when an insured person is unable to work |
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What is Own vs. Regular Occupation? |
own: inability to perform duties of normal occupation regular: inability to perform duties of ordinary occupation |
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What is the difference in coverage in terms of own vs. regular occupation? |
own: full benefits paid even if you return to work in another capacity regular: benefits reduced if you return to alternate occupation |
