Chapter 12: Life Insurance

Records covering many years and including millions of lives have been combined into tables called the:

Standard Ordinary Mortality Table

the following factors should be considered before buying life insurance

• group life insurance

• present and future income

• net worth

An endowment life insurance policy pays the policyholder money at the maturity date, whereas a traditional policy pays the beneficiaries

upon death of the insured

The Standard Ordinary Mortality Table of 2001 was originally structured based on age and

gender

Which household has the highest need for life insurance?

Households with small children

Which method uses an equation of 70% of your salary for seven years?

easy method

the following are factors that affect the price of an insurance policy

• the costs of doing business

• the mortality rate it expects among policyholders

• the return on investments

A plan where the policyholder pays the same premium for as long as they live is called a(n):

whole life policy.