Finance 260 - Life/Disability Insurance

Flashcards covering key concepts related to life and disability insurance from the lecture notes.

Disability Insurance

Insurance that provides income to the insured if they cannot work due to injury or illness.

Actuarial Estimates

Statistical evaluations predicting the likelihood of disabilities, such as 1/3 experiencing a disability lasting 90 days or more.

Own Occupation Definition

A type of disability insurance qualifying you if you cannot perform all duties of your current occupation.

Any Occupation Definition

A disability insurance qualification whereby you must be unable to work in any job you are qualified for by education or experience.

Elimination Period

A waiting period typically ranging from 90-180 days before disability benefits begin.

Short-Term Disability Insurance

A policy designed to cover income loss for a brief period, filling the gap before long-term benefits begin.

Term Life Insurance

Insurance providing a lump sum cash benefit in case of death, purchased for a specific term.

Cash Value in Whole Life Insurance

The savings component of whole life insurance that accumulates over time and can be borrowed against.

Group Insurance

Insurance provided by an employer at a discounted rate, including group term life and group disability insurance.

Health Questionnaires

Documents required during the life insurance application process that assess your health to determine eligibility and rates.