Insurance is designed so that those who don't make claims help pay for those who do make claims. Thus, it is possible that a policyowner could pay a small amount of premium before the insured dies, and the beneficiary would receive a large death benefit.
Only one party to the contract is bound by a legally enforceable obligation
Unequal exchange in value
If in dispute, the courts rule in favor of the insured, not the insurer
Both parties to the contract are required to disclose to the other all material information
Life insurance replaces the income the insured would have earned if the insured had lived to retirement age. During the annuitant’s retirement years, annuities slowly pay out money the annuitant already owns.
Life insurance creates an instant estate, while annuities liquidate a sum of money.
Annuities create an instant estate, while life insurance liquidates an estate.
Annuities provide a tax free income in retirement.
Life insurance can be funded monthly, while annuities require a lump-sum funding.
ADLs are personal care, nutrition, and health issues such as walking, hygiene, dressing, transferring, and eating. Seeing, hearing, speaking, and sleeping are not used as an evaluation for paying benefits.
Speaking & sleeping
Hearing & eating
Mobility & bathing
Dressing & seeing
Mortal relates to death, while morbid relates to illness/disability.
They are virtually the same concept
Odds of sickness versus the odds of disability
Odds of dying versus the odds of disability
Odds of sickness versus the odds of dying
While “shall” means required or mandatory, “may” means permissible or allowed.
Mandatory & optional
Permissive & mandatory
Mandatory & unknown
Mandatory & permissive
Modified whole life allows the insured to pay a lower premium than traditional/ordinary whole life for the first few years. Single premium whole life requires a large, one-time, up-front payment to begin the policy; thus, it costs more than traditional whole life.
Single premium whole life, modified whole life, ordinary whole life
Modified whole life, single premium whole life, ordinary whole life
Ordinary whole life, modified whole life, single premium whole life
Modified whole life, ordinary whole life, single premium whole life
Conversion allows a term policy to be changed into a cash value policy (often whole life). While the premium will increase for the same amount of death benefit, no evidence of insurability is required.
Purchase another term policy and increase his death benefit without proof of insurability.
Convert to another term policy with a lower face amount without proof of insurability.
Purchase an individual annuity for any face amount using the 1035 exchange privilege.
Convert to a whole life policy for the same face amount without proof of insurability.
The S&P 500 is an index made up of the stock of 500 publically traded companies. Stocks are an ‘equity’ investment. This type of annuity is indexed to the market so that, as the economy grows, so does the value of the annuity. The money in the account is not invested directly into those 500 stocks.
The entire contract cannot reference any “outside” documents.
A copy of the application
All of the above can be written as ordinary, or individual, policies. Only credit life can also be written as a group policy
Endowment at 65
Life paid-up at 65
The incontestability clause keeps the policy from being cancelled after the insured’s death despite the applicant’s misdeeds.
It keeps the policy from being cancelled if, after two years, it is discovered that there was an error, concealment, or misrepresentation by the policyowner.
It keeps the policy from lapsing should the premium go unpaid by borrowing from the cash value.
It protects the death benefit from attachment by creditors after the insured passes away.
It dictates that if the insured and beneficiary die together, and the order of death is unknown, the beneficiary is presumed to have died first.
The COLA rider is tied to an inflation index, which permits the death benefit to increase periodically to offset the effects of inflation. The face amount will not decrease in times of deflation.
Will allow the insured to purchase additional insurance with evidence of insurability.
Will only increase with the inflation rate. There will be an additional premium charged, but no evidence of insurability is required.
Will increase or decrease along with the CPI. The premium will adjust accordingly. No evidence of insurability is required.
Will see an increase in its face value each year by a set percentage.
While every insurer faces possible fraudulent claims, not every insurer
deals with arson. The state would investigate insurer abuses such as fraud, not the companies themselves.
Possible arson activity
Possible fraudulent claims by the insureds
Unfair trade practices by the insurers
Ratings and claims abuses by the insurers
ESOP’s invest in the employer’s stock.
ESOP’s invest in a portfolio of stock selected by the employer.
Profit-sharing plans allow employees to share in the employer’s success.
Defined benefit plans are often linked to an employee’s years of service.
Defined benefit and defined contribution plans have different penalties for early distribution.
According to the code, financial losses are not one of the 3 major loss exposures.
選擇要在Apple App Store上查看的Topgrade應用程序。