Chapter 2 - Life insurance products (2) Flashcards
1
Q
What is whole life assurance
A
It is a contract to pay a benefit on the death of the life insured whenever that might occur
2
Q
What is term assurance
A
It is a contract to pay a benefit on the death of the life insured within the term of the contract
3
Q
What can a decreasing term assurance be used for
A
- It can be used to repay the outstanding balance under a repayment loan
- It can be used to provide an income for a family with children until such a time as the children can provide for themselves
4
Q
What is a renewable term assurance
A
It is a term assurance with the option to renew. The renewal can be made without further medical underwriting
5
Q
What is a convertible term assurance
A
It allows the policyholder to convert the term assurance into another type of contract, such as a whole life or endowment assurance.
6
Q
A
