The document defines the key parties in a life insurance contract - the insured, owner, and beneficiary. The insured is the person whose death triggers the insurance payout, the owner controls the contract, and the beneficiary receives the payout. There are five ways a beneficiary can receive proceeds: as a lump sum, fixed amount, fixed period payments, interest only payments, or lifetime income. The document also describes some optional extra costs that can provide additional coverage, such as guaranteed insurability, waiver of premium, and double indemnity payout for accidental death.

1. Planning for the Future
Part 2

2. The basic features of a life insurance
contract and their purpose
• Insured
• Owner
• Beneficiary

4. Definitions
• Insured- the person whose death causes the
insurer to pay the claim
• Owner- is the person who may exercise the
rights created by the contract
• Beneficiary- is the person receiving the
proceeds when the insured dies

5. The five different ways a beneficiary
may take proceeds after the insured’s
death
• Cash
• Fixed amount
• Fixed period
• Interest only
• Life income

6. Extra-cost options
• Guaranteed insurability
• Waiver of premium
• Double indemnity

7. Continued
• The double indemnity is more valuable
because it will double in value if the insured
person dies of a specified death
• The guaranteed is valuable because for some
people there health may decline over the
years of purchasing the insurance. This policy
calls for purchasing additional

8. Continued
• Insurance and if the person is coming weaker
over the years they are auguring more
insurance to help with the illness
• The waiver of premium option basically means
if the person becomes totally disabled then
the premiums are waived

9. References
Dorfman, M. S. (2008). Introduction to risk
management and insurance (9th ed.). Upper
Saddle River, NJ: Prentice Hall.