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25 Cards in this Set

  • Front
  • Back

Earnings Multiple Approach

Method of determining your life insurance needs calculates the annual loss of income stream

Life Annuity

A life insurance beneficiary can receive the death proceeds tax-free and a monthly check until their death under this settlement option

Flexible Spending Account

A savings plan offered by some employers that allows each employee to have pretax earnings deposited into a specifically designated account for paying qualified medical and dependent care bills

Loan Clause

Cash value policies include this clause that allows you to borrow against cash value of policy

Affordable Care Act

Children are allowed to stay on their parents insurance policy until their 26

Rating Agencies

Companies such as A.M. Best, Moody's and Standard & Poor's evaluate the financial stability of the insurance industry


Individual designated by the owner of the life insurance policy to receive the policy's proceeds upon the death of the insured

Needs Approach

Insurance purchase when you think about immediate needs at time of death, debt elimination funds, immediate transitional funds, dependency expenses, spousal life income, educational expenses for the children and retirement income

Worker's Compensation

Insurance that covers cost of work related injuries

Major Medical Insurance

Insurance that covers medical costs beyond those covered by basic heath insurance

Dread Disease

Insurance that only covers certain issues such as lung cancer

Whole Life

Insurance whose cash value amount to be fixed rather than dependent upon other variables

Group Term Life

Life insurance through her place of employment. She will not need to take a physical exam

Disability Insurance

Many people without this insurance because price is prohibitive for most people


Settlement option that provides for ongoing payment for a period of time

Risk Pooling

Sharing the financial consequences associated with the risk in the insurance industry


Special provisions that might be added to your policy which either provide extra benefits to the beneficiary or limit the company's liability under certain conditions


Statisticians specializing in estimating probability of death based on personal characteristics

Settlement Options

The alternative ways that a beneficiary can choose to receive the policy benefits upon the death of insured

Grace Period

This policy feature that allows you to pay the premium late but still retain coverage

Decreasing Term Insurance

The premiums remain constant, but the face amount of the policy declines

Term Insurance

The primary advantage of this is affordability

Incontestability Clause

This clause states that the insurance company cannot dispute the validity of the contract after a specified time, usually 2 years

Cost of living adjustment

This rider increases your death benefits at the same rate as inflation without forcing you to complete a new medical exam

Insurance MATH

To determine the coverage subtract deductible and coinsurance amount