I got a life!
The policyowner temporarily assigns a life insurance policy to a creditor as collateral for a loan.
What is a collateral assignment?
The 7-month period that starts 3 months before the month you turn 65.
What is the Medicare initial enrollment period?
The risk of living too long.
What is excessive longevity?
This provides financial protection for the directors and officers and the corporation if the directors and officers are sued for mismanagement of the company’s affairs
What is a directors and officers liability policy?
Annual premiums, cash values, dividends, and the time value of money.
What are considerations for the cost of life insurance?
This allows the policyowner to borrow the cash value.
What is a policy loan provision?
Covers doctor's visits, outpatient care, preventive services, and some medical equipment. You have to pay a monthly premium.
What is Medicare Part B?
Premium payments, interest earnings, unliquidated principal of annuitants who die early.
What are the sources of annuity payments?
Used to cover a direct physical damage loss to commercial buildings and personal property.
What is the building and personal property coverage form?
The cash value and expected dividends are subtracted from annual premiums.
What is the traditional net cost method of life insurance?
A policy that pays dividends.
What is a participating policy?
Sold by private insurance companies and is designed to offset costs associated with Medicare deductibles and coinsurance.
What is Medicare Supplemental Insurance or a Medigap Policy?
The period in which funds are paid out, or annuitized.
What is the liquidation period?
Designed to cover the loss of business income, expenses that continue during the shutdown period, and extra expenses because of loss from a covered peril.
What is business income insurance?
This part of the payment is taxable as ordinary income.
What is the interest component of period payments?
Cash, reduce next premium, accumulate at interest, paid-up additions, apply toward term insurance, or convert to a paid-up contract.
What are options for taking life insurance dividends?
Covers hospital stays, skilled nursing facility care, hospice care, and some home health care. Most people don't have to pay a premium.
What is Medicare Part A?
The income payments terminate when the first covered person dies.
What is a joint annuity?
Examples include wrongful termination, work related harassment, and demotion.
What is employment-related practices liability insurance?
This must be completed more than 3 years prior to the death of the insured via an absolute assignment.
What is removal of life insurance proceeds from the gross estate?
Lump sum, interest option, fixed-period option, and fixed-amount option.
What are life insurance settlement options?
You will automatically be enrolled in Part A and Part B.
What is if you are eligible for Medicare and already receiving retirement benefits from Social Security?
investment in the contract / expected return = what is not included as taxable income.
What is the exclusion ratio?
Covers liability claims arising out of occurrences that take place during the policy period, regardless of when the claim is made.
What is an occurrence policy for commercial general liability?
Estimate the amount of life insurance you need.
What is the second step in "Shopping for Life Insurance"?