Chapter 7 Flashcards
When a policyholder must prove that they have financial stakes in whatever or whomever they are trying to insure, this is called…?
insurable interest
When you take out life insurance on yourself, you (do or do not) not need to prove that you have an insurable interest in your own life.
do not
Living benefits can also be considered as…
cash value
_________ life policies have a cash value that policyowners can borrow against.
Whole or universal
Terminally ill/injured riders are also known as
accelerated benefits
Selling your life insurance policy is also known as
Life/viatical settlement
A licensed life-insurance agent who sells life settlement policies is also known as a
life settlement broker
Life insurance that a company buys on the life of an important executive is called..?
key-person insurance
If one business partner dies, the other business partner can purchase the dead guy’s share of the business, this is called..?
buy-sell agreements/buyout agreements
The person/institution/charity who receives the death benefit when the insured dies is called the..?
beneficiary
The ____________ is the first in line to receive benefits when the insured dies
primary beneficiary
If the primary beneficiary dies before the insured dies, the benefits go to the ______ beneficiary.
secondary/contingent beneficiary:
All of the policyowner’s rights go to the beneficiary in a ____________ situation.
irrevocable beneficiary designation:
The period when a spouse cannot collect Social Security survivorship benefits is called…?
blackout period:
Human Life Value is..?
individual earning potential
