01:220:110 Study Guide - Final Guide: Double Indemnity, Life Insurance

76 views2 pages

Document Summary

Economics 110 - personal finance and decision making. Whole - a permanent policy for which you pay a specified premium each year for the rest of your life. Term - temporary; provides protection against loss of life for only a specified period of time: estimating life insurance. Easy method - typical family will need 70% of your salary for seven years: (current income x 7) x . 7. Dink - dual income, no kids; need of everything. Nonworking spouse - multiply the number of years before the youngest child turns 18 by ,000: (18 - kid"s age) x ,000. Participating - life insurance that provides policy dividends; higher premium than nonparticipating, but part of the premium is refunded to the policyholder annually. Non-participating - life insurance that does not provide policy dividends - same premium each year: key provisions in a typical life insurance policy. Nonforfeiture clause - allows the insured not to forfeit all accrued benefits.