《风险管理与保险 齐瑞宗》Treisch12e_Ch16.pptVIP

Loss of LifeChapter 16 Chapter Objectives To distinguish among the insurer, the beneficiary, the insured, and the policyowner of the life insurance policy Describe the major characteristics of term life, whole life, universal life, variable life, and other forms of life insurance and give examples of appropriate uses for each List three general premium payment arrangements for whole life insurance and discuss the effects of each arrangement on the buildup of the policy’s cash value Explain how life insurance premiums, death benefits, and cash values are treated for federal income tax purposes Chapter Objectives Explain the intent of the following contract provisions Incontestability clause, suicide clause, misstatement-of-age clause, misstatement-of-sex clause, entire contract clause, provisions related to policy assignment clause, war hazard exclusion, aviation hazard exclusion, spendthrift trust clause, and grace period and reinstatement provisions Explain the nature of policyowner dividends, nonforfeiture options, and settlement options and describe the choices available for each of these terms Give examples of important considerations in wording the beneficiary designation in a life insurance policy Explain the intent of the waiver of premium benefit, the accidental death benefit, and living benefit options Introduction For many people, the risk management tool most appropriate for dealing with the exposure of premature death is life insurance The standard arrangement is a contract specifying that upon the death of a person whose life is insured A stated sum of money (the policy’s face amount) is paid to the person or organization designated in the policy as the beneficiary Many life insurance contracts also have benefits that may be payable due to circumstances other than death One example is the savings element (called the cash value) that accumulates under some policies The cash value can be refunded to the owner of the policy if the contract is