保险学5

Mortgage redemption insurance
Joint mortgage redemption insurance
provides the same benefit as a mortgage redemption policy except the joint policy insures the lives of two people.
Mortgage redemption insurance
Mortgage redemption insurance is a plan
of decreasing term insurance designed to provide a death benefit amount that corresponds to the decreasing amount owed on a mortgage loan.
Credit life insurance
Credit life insurance is a type of term life
insurance designed to pay the balance due on a loan if the borrow dies before the loan is repaid.
Level Term Life Insurance
Level term life insurance which provide a
death benefit that remains the same amount over the term of the policy.
Decreasing term life insurance
Term Life Insurance
Chapter Outline
Characteristics of term Life Insurance products Plans of term Life Insurance Coverage Features of Term Life Insurance
Features of The Term Life Insurance
Renewable term life insurance convertible term life insurance
Renewable Term Life Insurance
Renewable term life insurance Policies
Family Income coverage
Family income coverage is a plan of decreasing term insurance that provides a stated monthly income benefit amount to the insured’s surviving spouse if the insured dies during the term of the coverage.
Decreasing term life insurance provides a
death benefit that decreases in amount over the term of coverage.
Decreasing term life insurance
Mortgage redemption insurance credit life insurance family income coverage
Renewable Term Life Insurance
Yearly renewable term insurance one year
term life insurance that is renewable at the end of the policy term. In many cases, the renewable provision places some limit on the policyowner’s right to renew.
Questions
Identify three different plans of term life insurance coverage and give an example of each. Renewable term life insurance and convertible term life insurance
include a renewal provision that gives the policyowner the right, within specified limits, to renew the insurance coverage at the end of specified term without submitting evidence of insurability. Evidence of insurability proof that the insured person continues to be an insurable risk.
Plans of Term Life Insurance Coverage
Level term life insurance Decreasing term life insurance Increasing term life insurance
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Fast Fact
OneOne-third of new ordinary life policies sold in the U.S. In 1997 were term life insurance.
Characteristics of Term Life Insurance
Term life insurance protection is usually provide by an insurance policy, but it can also be provided by a rider added to a policy. Policy rider ( an endorsement ) is an amendment to an insurance policy that becomes a part of the insurance contract that either expands or limited the benefits payable under the contract.
Increasing Term Insurance
Provides a death benefit that starts at one amount and increase by some specified amount or percentage at stated intervals over the policy term.
Convertible Term Life Insurance
Antiselection Insurers usually charge a higher premium rate for a convertible term life insurance. Insurers usually limit the conversion privilege in some way. Does not permit conversion after the insured has attained a specific age, such as 55 or 65. Or after the term policy has been in force for a specified time. Be limited to a amount that is only a percentage of the original face amount.
The coverage may be renew only until the insured attains a stated age. The coverage may be renewed only a stated maximum number of times.
Why do the restrictions exist ?
Convertible Term Life Insurance
Convertible term life insurance Policies contain a conversion privilege that allows the policyowner to change -convert- the convertterm insurance policy to a permanent plan of insurance with out providing evidence that the Insured is an Insurable risk. The premium for the permanent coverage cannot be based on any increase in the insured mortality risk, except with regard to an increase in the insured’s age.
Characteristics of Term Life Insurance
Term Life Insurance which provides a death
benefit if the insured dies during a specified period. Policy term all term life insurance products provide coverage for a specified period of time. Policy anniversary is the anniversary of the date on which coverage under the policy became effective.