IMch16 - CHAPTER 16 Loss of Life TYPES OF LIFE INSURANCE...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 16 Loss of Life TYPES OF LIFE INSURANCE Term Insurance Duration of Term Coverage Coverage Options and Guarantees Face Amount Variability Whole Life Insurance Universal Life Insurance Other Types of Life Insurance Variable Life Variable Universal Life Modified Life Endowment Industrial Life Credit Life INCOME TAX TREATMENT OF LIFE INSURANCE Premiums Death Benefits Cash Values LIFE INSURANCE CONTRACT PROVISIONS Incontestability Clause Suicide Clause Misstatement of Age or Sex Entire Contract Clause Assignments Dividend Options Cash or Payment of Premium Accumulation at Interest Paid-Up Additions One-Year Term Option Nonforfeiture Options Cash Value Option Paid-Up Insurance Option Extended-Term Option Policy Loans Beneficiary Designation Excluded Causes of Death Settlement Options Lump-Sum Option Fixed-Period Option Fixed-Amount Option Interest Option Life Income Options Coverage Extension Options Waiver of Premium Benefit Accidental Death Benefit Accelerated Death Benefit Spendthrift Trust Clause Grace Period and Reinstatement Clauses KEY TERMS AND CONCEPTS 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Accelerated death benefit Accidental death benefit Assign Automatic premium loan provision Aviation hazard exclusion Beneficiary Cash value Cash value option Common disaster clause Contingent beneficiaries Convertible Cost-of-living rider Credit life insurance Debit insurance Decreasing term Endowment insurance Entire contract clause Extended-term option Face amount Fixed-amount option Fixed-period option Grace period clause Guaranteed insurability rider Home service life Incontestability clause Increasing term Industrial life Inside buildup Interest option Irrevocable beneficiary Level term Life insurance Limited-pay life Living benefit option Long-term care rider Lump-sum option Misstatement-of-age clause Misstatement-of-sex clause Modified endowment contracts Modified life Nonforfeiture options One-year term option Paid-up additions option Paid-up insurance option Participating Reinstatement clause Renewable term Revocable beneficiary Settlement options Seven-pay test Single-premium life Spendthrift trust clause Straight life Straight term Suicide clause Ten-year certain period Term insurance Twenty-pay life Type A universal life Type B universal life Universal life Variable life insurance Variable universal life Waiver of premium benefit War hazard exclusion Whole life insurance ANSWERS TO QUESTIONS FOR REVIEW AND DISCUSSION 1. The three major types of life insurance sold are term, whole life, and universal. Term insurance is designed to provide protection if an insured dies within a stated period of time. Whole life insurance is designed to be kept in force throughout the life of the insured and includes a cash value element. Universal life insurance is similar to whole life in that it is designed to be kept in force throughout the life of the insured and includes a cash value element, but universal life also
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 07/04/2010 for the course FIN 319 taught by Professor Briar during the Spring '10 term at Citadel.

Page1 / 4

IMch16 - CHAPTER 16 Loss of Life TYPES OF LIFE INSURANCE...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online