18 Questions
In life insurance, what are the two types of insurance companies mentioned in the text?
Life or long-term insurance companies
Which aspect differentiates certain cash flows under a policy from others as mentioned in the text?
Dependence on specific events occurring
What term is used to describe an annuity that is guaranteed to increase by 5% per annum?
Increasing annuity
When will a life annuity be paid according to the text?
Only if the policyholder is alive
What characteristic differentiates life insurance from general insurance according to the text?
Cover duration
Which cash flow timing is mentioned to be uncertain in life insurance policies by the text?
Date of death benefit payment
What is the term used for the person who enters into a contract with the insurance company?
Policyholder
What do we call the payments made by the insurer to the policyholder based on specified risk events?
Benefits
In a life insurance policy, who are individuals referred to when benefits are paid to them rather than the policyholder?
Beneficiaries
What is the term for the person who promises to pay certain amounts to the insurer to receive financial protection?
Policyholder
When a policyholder continues to pay premiums and the risk event has not yet happened, what is the status of the policy?
In force
What is the term used for a single payment made to a life insurer in exchange for a regular income during retirement?
Lump sum
What is the term used to refer to payments made under general insurance policies?
Claims
How are short-term insurance contracts typically designed in terms of duration?
Short-term with one-time renewal option
What happens to the premium when a general insurance policy is renewed?
Is reviewed and a revised premium becomes payable
If you want to enjoy cover for your car as long as you have it, why is the option to renew your insurance policy annually beneficial?
Guarantees continuous cover
What term is used to describe movable property in general insurance policies?
Contents
In the context of general insurance, what is the equivalent of 'policyholder' in life insurance?
Premium payer
Test your knowledge on life insurance contracts and terminology, including the concept of receiving a regular income in exchange for a lump sum payment to a life insurer. Explore key terms such as insurance policy and understand the financial protection provided by life insurance.
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