Arizona Life Insurance Exam - Life Insurance Basics 100% ACCURATE
4 views 0 purchase
Course
Arizona Life Insurance
Institution
Arizona Life Insurance
Beneficiary - ANSWER A person who receives the benefits of an insurance policy
Death Benefit - ANSWER The amount paid upon the death of the insured in a life insurance policy
Cash Value - ANSWER Equity amount accumulated in permanent life insurance
Estate - ANSWER A person's net worth
I...
Arizona Life Insurance Exam - Life
Insurance Basics 100% ACCURATE
Beneficiary - ANSWER A person who receives the benefits of an insurance policy
Death Benefit - ANSWER The amount paid upon the death of the insured in a life insurance policy
Cash Value - ANSWER Equity amount accumulated in permanent life insurance
Estate - ANSWER A person's net worth
Illustrations - ANSWER Presentation or depiction of nonguaranteed elements of a life insurance policy
Life Insurance - ANSWER Coverage on human lives
Liquidation - ANSWER Selling assets in order to raise capital (such as using cash value for capital needs)
Lump-Sum - ANSWER Payment of the entire benefit in one sum
Minor - ANSWER A person under legal age
Solvency - ANSWER The ability to meet financial obligations (an insurance company maintains enough
assets to pay claims)
Survivor Protection - ANSWER Life insurance can provide the funds necessary for the survivors of the
insured to be able to maintain their lifestyle in the event of the insured's death and this is called
________________
, Estate Conservation - ANSWER Life insurance proceeds may be used to pay inheritance taxes and federal
estate taxes so that it is not necessary for the beneficiaries to sell off the assets which is
___________________
Estate Creation - ANSWER The insured will have an estate worth the amount of the life policy upon the
first paid premium which is ______________
Viatical Settlements - ANSWER ____________________ allows someone living with a life-threatening
condition to sell their existing life insurance policy and use the proceeds when they are most needed,
before their death
Viator - ANSWER The insured selling their life insurance in a viatical settlement
Viatical Settlement Provider - ANSWER A person, other than a viator, that enters into a viatical
settlement contract (the person buying the life insurance policy)
Viatical Producer - ANSWER A person who represents the viatical settlement provider
Viatical Broker - ANSWER A person who represents the viator
Life Settlement - ANSWER Any financial transaction in which the owner of a life insurance policy sells a
policy that is no longer needed to a third party for some form of compensation, usually cash
Uses of Life Insurance - ANSWER 1. Survivor Protection
2. Estate Creation and Conservation
3. Liquidity and Cash Accumulation
4. Viatical Settlements and Life Settlements
Human Life Value Approach - ANSWER This approach gives the insured an estimate of what would be
lost to the family in the event of the premature death of the insured. It calculates an individual's life
value by looking at the insured's wage, inflation, the number of years to retirement, and the time value
of money.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller shantelleG. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
