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Chap 12-14
Section 14
10
Finance
Undergraduate 4
10/28/2011

Additional Finance Flashcards

 


 

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Term
a second form of this option is to use the dividends to purchase yearly renewable term insurance
Definition
fifth dividend option
Term
depends on the amt of the dividends, the insured's attained age, and the insurer's term insurance rates
Definition
the amt of term insurance purchased
Term
the dividends can also be used to convert a policy into a
Definition
paid-up contract
Term
if the paid-up option is used, the policy becomes paid-up whenever the reserve value under the basic contract plus the reserve value of the paid-up additions or deposit equal the net single premium for a paid-up policy at the insured's
Definition
attained age
Term
can also be used to mature a policy as an endowment
Definition
the dividend
Term
when the reserve value under the basic policy plus the reserve value of the paid-up additions or deposits equals the face amt of insurance, the policy matures as an
Definition
endowment
Term
the policy owner pays more than is actuarially necessary for the life insurance protection if what is purchased?
Definition
a cash-value policy
Term
since the policy owner pays more than is actuarially necessary for the life insurance protection when a cash-value policy is purchased, the policy owner should
Definition
get something back if the policy is surrendered
Term
the pmt to a withdrawing policy owner is known as a
Definition
nonforfeiture value or cash-surrender value
Term
all states have standard laws that require insurers to provide at least a minimum nonforfeiture value to policy owners who surrender their policies
Definition
nonforfeiture laws
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