Term
| Definition of Life Insurance |
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Definition
| Instantly creates and estate. Estate meaning value in form of value, money, funds, capital or assets. |
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Term
| Definition of Insurable Interest |
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Definition
| Policy Owner has a benefit if the person continues to live, invovles financial or economic interest in the person to be covered. |
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Term
| In Life Insurance, when must an individual be able to prove insurable interest? |
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Definition
| Insurable interest must exist at the time of application. |
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Term
| What are the 3 Factors that determine Life Insurance Premiums? |
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Definition
1.) Mortality
2.) Interest
3.) Expenses |
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Term
| What is Morality when used to determine Life Insurance? |
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Definition
| Morality Factor is determined from a morality table which provides an indication of the "probability of death" of an individual at a particular age. |
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Term
| What is used to determine mortality factor? |
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Definition
| A Commissioners Standard Ordinary Mortality Table is commonly used. |
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Term
| Gross Annual Premium is influenced by what factors? |
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Definition
1.) Mortality
2.) Interest
3.) Expenses |
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Term
| What is Net Single Premium? |
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Definition
| Is a premium that makes a provision for mortality (death benefit) losses only, while being influenced by the interest rate assumed, gender, benefit to be provided and the morality rate. |
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