Life and Health Insurance - CFP Module 5

Flashcards covering key concepts from the Life and Health Insurance Module.

Term Life Insurance

Temporary coverage with renewable options and possibly decreasing term.

Whole Life Insurance

Permanent coverage with higher premiums, cash value accumulation, and possible dividends.

Universal Life Insurance

Flexible insurance with adjustable premiums and face amounts, cash value tied to interest rates.

Variable Life Insurance

Insurance with cash value that varies based on investments in stocks and bonds.

Health Savings Accounts (HSAs)

Tax-advantaged accounts for individuals with high deductible plans, with no 'use it or lose it' policy.

Flexible Savings Accounts (FSAs)

Accounts where contributions are made pretax but must be used within a year, with a 'use it or lose it' policy.

Coinsurance

The percentage of costs the insured pays after the deductible is met.

Maximum Out of Pocket (MOOP)

The maximum amount the insured will pay before insurance covers 100% of additional costs.

Disability Income Insurance

Insurance providing income when an individual cannot work due to a disability.

Long-Term Care Insurance

Insurance covering costs of long-term care services, often requiring activities of daily living as triggers.