MTHEL131 Study Guide - Midterm Guide: Whole Life Insurance, Universal Life Insurance, Disability Insurance
16 Oct 2013
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Whole life insurance: provides coverage for the whole of the insured"s life term insurance: pays benefits only if insured dies during the policy term. Endowment insurance: pays benefits if the insured dies during policy term, and if the insured survives the policy term. Annuity: contract that promises to pay the insured (annuitant) a monthly payment starting at specified age. If payments cease upon death, it"s called a life annuity. Health insurance: payment is contingent on the insured incurring expenses or losing income due to health. Disability income insurance: payment provoked by mental/physical incapacity preventing the insured from working long-term care insurance: if incapacity prohibits insured"s activities of daily living. Medical expense insurance: covers health care expenses. Conditions for perfectly competitive insurance market: large number of buyers and sellers so that no one of them can influence the market, sellers have freedom of entry into and exit from the market (ex.
