L1: Introduction Flashcards
1
Q
Life Insurance Policy
A
pays lump sum either on death of insured or on survival to a predetermine maturity date to beneficiary or policyholder
2
Q
Life annuity
A
contract makes regular series of payments while recipient (annuitant) is alive
3
Q
Insurable Interest
A
death of the insured would cause policyholder to suffer financial loss. Insurance payoff should not leave beneficiary financially better off than if insured life had not died.
4
Q
Payment Assumption
A
policyholder pays premium and is the life insured
