FI 413 Lecture Notes - Lecture 16: Adverse Selection, Variable Universal Life Insurance, Employee Benefits
Document Summary
Provide two major products to individuals and businesses. Life insurance: insurance against death metlife is largest in exchange for premiums, a life insurance contract provides cash payments to beneficiaries upon the death of the insured. Term life: individual or group pure insurance protection; most popular insurance with size of benefit. Once term is over there are obligations and it is over. Permanent life: whole, universal, variable universal; premiums are higher. Especially at a young age cash value: companies let you borrow against this. Reinsurance: insurance purchased by the primary insurer against high claims. Annuities: investment contract that often provides insurance against outliving one"s assets, individual or group provide for retirement income (monthly) can be structured for as long as you live. Buy a contract if you live too long; given money if don"t die vs. life insurance which gets money if you die.
