Association or Group
Fully portable and transferable
Usually not portable and
not transferable Provisions can be changed at policy
anniversary and by the employer
Contracts can be cancelled
by insurer Contract cannot be cancelled
Limited selection of optional benefits available
Large selection of optional benefits
Provisions cannot be changed
Insured or policy holder The individual who contracts the policy with
the insurance company
Insurer The insurance company
Policy The insurance contract that contains the
legally enforceable agreement between the
insurer and the insured
Face value The amount of money paid by the insurer in the
event of the death of the insured
Beneficiary The individual(s) named to receive
the face value of the policy upon the
death of the insured
The amount of money the insured pays the insurer
for the policy
Types of Life Insurance
Term Life Insurance
Bryan is a 32 year old nonsmoker. He would like to purchase a 10year
term life insurance policy with a face value of $300,000.00.
1) Calculate Bryan's annual premium
2) Calculate the semiannual premium Bryan would pay.
Insurance Tables for Consumer course
Linh is a 40 year old non smoker who is interested in
purchasing a whole life insurance policy with a face
value of $200,000.
1) Calculate her annual premium
2) Calculate her monthly premium
Tyrone purchased an insurance policy for $200,000 when he was
25 years old. When he is 40 he decides to cancel his policy.
1) Calculate his cash surrender value.
2) Calculate the total annual premiums Tyrone paid over the
life of his insurance policy.