Financial Services _Çô Client Services RFC121 Study Guide - Final Guide: Life Insurance, Payment Protection Insurance, Whole Life Insurance
19 Dec 2016
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Cost less, permanent life insurance, because you get no cash value if cancelled: decreasing term insurance. Term insurance pay less to beneficiary as time passes. Insurance period you select might depend on your age or on how long you decide you will need coverage. At the beginning the person pays higher premiums that the risks he/she represents. Risk of death is higher in the later years. Participating policy: life insurance that provides policy dividends: premiums are based on future expenses surplus, distributed to policyholders in forms of dividends. You can be paid in cash or use dividends to invest in the i(cid:374)surer"s segregated fu(cid:374)ds si(cid:373)ilar to (cid:373)utual fu(cid:374)ds, (cid:271)u(cid:455) additional coverage, apply the divided to pay for parts of your premiums. Non-participating policy: life insurance that does not provide policy dividends. Whole life policy: an insurance plan in which the policy holder pays a specified premium each year: also called straight line policy, ordinary policy.
