保险学原理chapter6

PermanentLifeInsuranceandEndowmentInsuranceChapterOutlinePermanentLifeInsuranceaNewerGenerationofPermanentProductsEndowmentInsurancePermanentLifeInsuranceTraditionalwholelifeinsurancemodifiedwholelifeinsurancejointwholelifeinsurancelastsurvivorlifeinsurancefamilypoliciesmonthlydebitordinarypre-needfuneralinsurancePermanentlifeInsuranceTwocharacteristics:offerlifetimecoverageprovideInsurancecoverageandcontainasavingselement.Wholelifeinsurancelifeinsurancethatprovideslifetimeinsurancecoverageatalevelpremiumratethatdoesnotincreaseasinsuredages.Cashvaluethesavingselementofapermanentlifeinsurancepolicy,whichrepresentsthepolicyowner’sownershipinterestinthepolicy.TraditionalWholelifeInsurancePolicyloanaloanthataninsurermakestotheownerofapermanentlifeinsurancepolicyandthatissecuredbythepolicy’scashvalue.PremiumPaymentPeriodsContinuous-premiumpolicieslimited-paymentpoliciessingle-premiumpoliciesContinuous-premiumpoliciesPremiumarepayableuntilthedeathoftheinsured.Limited-paymentpoliciesIsawholelifepolicyforwhichpremiumsarepayableonlyuntilsomestatedperiodexpiresoruntiltheinsured’sdeath.Examplea20-paymentwholelifeinsuranceisapolicyforwhichpremiumsarepayablefor20years.Apaid-up-at-age-65wholelifeinsurancepolicyprovidesthatpremiumsarepayableuntiltheinsuredreachesthepolicytheanniversaryclosesttoorimmediatelyfollowingher65thbirthday.Limited-paymentpoliciesPaid-uppolicyapolicythatrequiresnofurtherpremiumpaymentsbutcontinuestoprovidecoverage.Cashvaluegenerallybuildmorerapidlyunderlimitedpaymentpoliciesthantheydoundercontinuouspremiumpolicies.Single-premiumPoliciesIsatypeoflimited-paymentpolicythatrequiresonlyonepremiumpayment.ModifiedWholeLifeInsuranceFunctionsinthesamemannerasatraditionalwholelifepolicyexceptthatthepolicy’sannualpremiumchangesafteraspecifiedinitialperiod,suchas5,10,15or20years.Thefaceamountofamodified-premiumwholelifepolicyremainslevelthroughoutthelifeofthepolicy.ModifiedWholeLifeInsuranceThechiefadvantagetothepolicyownerofbuyingamodifiedpremiumwholelifeinsuranceisthatheisabletopurchasealargeramountofwholelifeinsurancethanhewouldotherwisebeabletoafford.Thechiefdisadvantageisthatthecashvaluebuildsmoreslowly.ModifiedCoverageAmodifiedcoveragepolicyprovidesthattheamountofinsurancewilldecreasebyspecificpercentageoramounteitherwhentheinsuredreachescertainstatedagesorattheendofstatedperiods.Forexamplethefaceamountofamodifiedcoveragewholelifeinsurancepolicymaybeginat$100,000,decreaseto$75,000whentheinsuredreachesage60,decreasefurtherto$50,000atage70,andremainlevelfortherestoftheinsured’slifetime.JointWholeLifeInsuranceHasthesamefeaturesandbenefitsasindividualwholelifeinsurance,exceptthatitinsurestwolivesunderthesamepolicy.First-to-dielifeinsuranceLastsurvivorlifeinsuranceAlsoknownassecond-to-dielifeinsuranceisavariationofjointwholelifeinsuranceunderwhichthepolicybenefitispaidonlyafterbothpeopleinsuredbythepolicyhavedied.FamilyPoliciesWhichisawholelifeinsurancethatincludestermlifeinsurancecoverageontheinsured’sspouseandchildren.Theamountofterminsurancecoverageisgenerallyone-fourthorone-fifthoftheamountoftheinsured’swholelifeinsurancecoverage.MonthllyDebitOrdinaryIsawholelifeinsurancepolicythatismarketingunderthehomeservicedistributionsystemandispaidforbymonthlypremiumpayment.Pre-needFuneralInsuranceANewerGenerationofPermanentProductsUniversallifeinsuranceadjustablelifeinsuranceindeterminatepremiumlifeinsuranceinterest-sensitivewholelifeinsurancevariablelifeinsurancevariableuniversallifeinsuranceUniversalLifeinsuranceIsaformofpermanentlifeinsurancethatischaracterizedbyitsflexiblepremiums,itsflexiblefaceamountanddeathbenefitamounts,anditsunbundlingofthepricingfactors.UnbundledPricingFactorsMortalityChargestheinsurerperiodicallydeductsamortalitychargefromtheuniversallifepolicy’scashvaluetocoverthemortalityrisktheinsurerhasassumed.UnbundledPricingFactorsInterestthepolicyguaranteesthattheinsurerwillpayatleastastatedminimuminterestrateonthepolicy’scashvalueeachyear.ExpensesThefollowingexpenseschargesmaybeimposed:aflatchargethefirstpolicyyeartocoversalesandpolicyissuecostsapercentageofeachannualpremiumtocoverexpenseamonthlyadministrationfeespecificserviceforcoveragechanges,cashwithdrawals,andpolicysurrenders.FlexibilityFeaturesFaceamountandamountofdeathbenefitflexiblepremiumsHowaUniversalLifePolicyOperatesEffectsofRegulationonUniversalLifeProductsInsuranceproductorinvestmentproducttaxtreatmentpolicy’scashvalueandthefaceamountsurrenderchargesPeriodicreportsSampleannualreportorauniversallifeinsurancepolicyIndeterminatePremiumLifeInsuranceIsatypeofnonparticipatingwholelifeinsurancethatspecifiestwopremiumrates-bothamaximumguaranteedpremiumrateandalowerpremiumrate.Interest-sensitiveWholeLifeInsuranceAtypeofindeterminatepremiumlifeinsurancewhichprovidesthatthepolicy’scashvaluecanbegreaterthanthatguaranteedIchangingassumptionsregardingmortality,investment,andexpensefactorswarrantssuchanincrease.VariableLifeInsuranceIsaformofwholelifeinsuranceunderwhichthedeathbenefitandthecas