chapter 2 life products terms to know Flashcards
attained age
the insured age at the time the policy is issued or renewed
cash value
a policy’s savings element or living benefit
face amount
the amount of benefit stated in the life insurance policy
fixed life insurance
contracts that offer guaranteed minimum or fixed benefits
deferred
withheld or postponed until a specific time or event in the future
endow
the cash value of a whole life policy has reached the contractual face amount
level premium
the premium that does not change throughout the life of a policy
liquidation of an estate
converting a person’s net worth into a cash slow
nonforfeiture values
benefits in a life insurance policy that the policyowner cannot lose even if the policy is surrendered or lapses
policy maturity
in life policies, the time when the face value is paid out
qualified plan
a retirement plan that meets IRS guidelines for receiving favorable tax treatment
securities
financial instruments that may trade for value (ex. stocks, bonds, options)
suitability
a requirement to determine if an insurance product is appropriate for a customer
variable life insurance
contracts in which the cash values accumulate based upon a specific portfolio stock without guarantees of performance
