Shared Flashcard Set

Details

Chap 11-11
Section 11
15
Finance
Undergraduate 4
10/26/2011

Additional Finance Flashcards

 


 

Cards

Term
term insurance is appropriate if the amount of income that can be spent on life insurance is
Definition
limited
Term
term insurance is appropriate if the need for protection is
Definition
temporary
Term
term insurance can be used to guarantee
Definition
future insurability
Term
term insurance premiums increase at an increasing rate and eventually reach
Definition
prohibitive levels
Term
at the time of writing, premiums are rising, which will make it more difficult for policy owners to keep what type of insurance?
Definition
term
Term
term insurance is inappropriate if you wish to

(unless it is supplemented with an investment plan)
Definition
save money for a specific need
Term
with decreasing term insurance, if you become uninsurable, you must convert the remaining insurance to a permanent plan to
Definition
freeze the remaining amount of insurance
Term
if you become uninsurable with decreasing term insurance, and the policy is not converted to a permanent policy to freeze it, the insurance protection continues to
Definition
decline even though you are uninsurable
Term
does not provide for changing needs, such as birth of a child or provide an effective hedge against inflation
Definition
decreasing term insurance
Term
a cash-value policy that provides lifetime protection
Definition
whole-life insurance
Term
in what type of insurance is a stated amt paid to designated beneficiary when the insured dies, regardless of when the death occurs
Definition
whole life insurance
Term
also called continuous premium whole life insurance and straight life
Definition
ordinary life insurance
Term
a level-premium policy that provides lifetime protection to age 100
Definition
ordinary life insurance
Term
if the insured is still alive at age 100, the face amt of insurance is paid to the policy owner at that time
Definition
ordinary life insurance
Term
in ordinary life insurance, premiums are what throughout the premium paying period?
Definition
level
Supporting users have an ad free experience!