The equivalent level annual dividend is meant to represent the part of the interest-adjusted payment and the cost that is, in effect, not guaranteed by the insurer, because dividends will change in the future as the insurer s experience changes. This amount gives the buyer an indication of the extent to which these nonguaranteed amounts affect the interest-adjusted payment and the cost of a policy. One payment that can replace several other payments, because it equals the value of the other payments. An apparent suicide in which there is doubt about whether the deceased intended to die as a result of an apparently self-destructive act. A plan that addresses how best to preserve an individual s assets after the individual dies.
Life insurance is often an important part of an estate plan.
The amount of interest above the guaranteed amount that an insurance company pays on a settlement option when interest rates are high. The type of excess reinsurance plan most often used in health insurance. The reinsurer is usually liable if a specific claim exceeds a certain limit, called the attachment point. A type of reinsurance plan in which the reinsurer pays claims only in excess of a specified amount that may be related to losses per insured person, losses per accident or event, or total losses per class of business. A program that allows a proposed insured who is replacing a policy to obtain the new policy on the basis of little or no evidence of insurability if his or her insurability has recently been established by the company that issued the original policy.