Chapter 2 Terms Flashcards
(10 cards)
What is attained age?
The insured’s age at the time the policy is issued or renewed.
What is cash value in a life insurance policy?
A policy’s savings element or living benefit.
What does face amount refer to?
The amount of benefit stated in the life insurance policy.
What does deferred mean in insurance terms?
Withheld or postponed until a specified time or event in the future.
What does it mean to endow a policy?
The cash value of a whole life policy has reached the contractual face amount.
What is a level premium?
The premium that does not change throughout the life of a policy.
What is liquidation of an estate?
Converting a person’s net worth into a cash flow.
What are nonforfeiture values?
Benefits in a life insurance policy that the policyowner cannot lose even if the policy is surrendered or lapses.
What is policy maturity?
In life policies, the time when the face value is paid out.
What are securities?
Financial instruments that may trade for value (for example, stocks, bonds, options).
