Vocabulary
What is the definition of Asset?
Anything that is owned by an individual and regarded as having worth or value.
The Breadwinner
Who can the owner also be?
The Insured
Why would a policy owner transfer the title, rights, and benefits to an assignee?
This transfer of benefits may occur when the assignor, or owner of a life insurance policy, transfers the benefits to be used as collateral to ensure a debt is paid.
What does HIPAA stand for?
Health Insurance Portability and Accountability Act
What is the defintion of Term Life Insurance?
Insuarnce company agrees to pay the death benefit if the insured dies during the policy period.
Adequate is often a critical part of a successful personal.........
Financial Plan
What is an insurable interest?
When a person or entity derives a financial benefit from an insured's continued survival.
What is an Assignee?
An assignee is an individual or entity (such as a bank) to whom the title, rights, and benefits under a life insurance policy are assigned and who is also a beneficiary.
What does an underwriter consider to detrmine insurability on a life insurance policy?
Considers the risk posed by the individual.
What is the definition of Beneficiary?
The person(s) who will receive the assets upon the death of the grantor.
What are some of the process to determine insurability of the person taking out a life insurance policy?
- Medical Info
- Weight
- Height
- Gender
- Age
Describe absolute assignment of benefits?
A policy owner has transferred ownership of the policy to another party without any terms/conditions.
What is the responsibility of the company?
evaluates the applicant and risk through the process of underwriting and makes an offer of insurance.
What medical conditions are considered when determining insurability?
These include medical conditions, family history, chemical addiction and treatment, and physical disabilities
What is definition of Conditional Receipt?
The agreement between the insurer and the applicant and can provide temporary life insurance coverage until the insurer has issued the policy.
What are some of the reasons that people could be required to purchase life insurance?
- Finanical Protection
- Purchase of child support in the event of a divorce
- Key Employees
- Pay estate taxes on expensive pieces of property
What is the difference between a Primary Beneficiary & a Contingent Beneficiary?
Primary Beneficiary is always the first in the line for the benefit. The Contingent Beneficiary comes in second in line for the benefit of the primary beneficiary dies before the insured.
What are some reasons people might want to buy life insurance?
take care of the financial burden connected with costs associated with the death of a breadwinner or other key family member.
What are 2 additional sources of information that can be used with the applicant's permission in the underwriting process?
Medical Information Bureau & Attending Physician's Statement (APS)
What is the definition of Survivorship Clause?
States that if the insured and the primary beneficiary die at the same time, it is assumed that the primary beneficiary predeceased, or died before, the insured, and the death benefit is paid to the contingent beneficiary.
What is the difference between a Revocable Beneficiary and an Irrevocable Beneficiary?
Revocable: You can change it; beneficiary has no rights.
Irrevocable: You cannot change it without the beneficiary's consent; beneficiary has guaranteed rights.
Why would a policy owner transfer the title, rights, and benefits to an assignee?
Transfers the benefits to be used as collateral to ensure a debt is paid.
What are some people buy life insurance because they are required to do so. What are some reasons why someone might be required to purchase life insurance?
An insurance professional needs to understand the many reasons people purchase life insurance.
Ed is 29, single, in good shape and
health. He lives in the county, has
many hobbies including biking, and
lives in Alaska.
Information considered should include hobbies by specific place or residence occupation behaviors driving criminal records credit family history chemical addiction health habits surgeries medical conflations length of health issues tobacco use.