Life Insurance Exam Study Guide

Vocabulary flashcards for Life Insurance Exam Study Guide.

Key Employee Policy

A policy taken out by a company on its director of operations, where the proceeds are paid to the company.

Accidental Death and Dismemberment (AD&D) Benefit

A provision that pays a benefit only if death results from an accident.

Joint and Survivor Life Annuity

An annuity that ensures level income for the lifetime of two annuitants.

Renewal Term Policy

A policy where the renewal premium is calculated based on the insured's attained age.

Buy and Sell Agreement

An agreement to assure continuation of a business in the event of the death of a partner, often funded by life insurance policies.

Policy Ownership Transfer

Transferring ownership of a life insurance policy affects who receives the proceeds upon the insured's death.

Individual Retirement Account (IRA)

A retirement plan that can be established by an employee, regardless of other retirement plans.

Modified Endowment Contract (MEC)

A policy that becomes a MEC when too much premium is paid in the initial policy years.