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Finance: Chapter 9
Terms in this set (41)
A group of insurance benefits provided to a living individual as a result of sickness or injury.
Insurance that provides a payment to a specified beneficiary when the insured dies.
The amount stated on the face of the policy that will be paid on the death of the insured.
The named individual who receives life insurance payments upon the death of the insured.
The individual who is covered in the life insurance policy.
The individual who owns all rights and obligations to the policy.
An interlocking system of ten provincial and three territorial health insurance plans provided by the governments, including the federal government.
Canada Health Act
Establishes the criteria and conditions related to insured health care services that provinces and territories must meet to receive money from the federal government for health care.
Insured Health Care Services
Medically necessary hospital, physician, and surgical-dental services provided to insured persons.
An eligible resident of province.
Canada Health Transfer (CHT)
The largest federal transfer of money to the provinces and territories, providing them with cash and payments and tax transfers in support of health care.
Disability Income Insurance
A monthly insurance benefit paid to you in the event that you are unable to work as a result of an injury or an illness.
The concept of putting an insured individual back into the same position he or she was in prior to the event that resulted in insurance benefits being paid.
The period from the time you become disabled until you begin to receive disability income benefits.
Long-term Care Insurance
Covers expenses associated with long-term health conditions that cause individuals to need help with everyday tasks.
Life insurance that is provided over a specified time period and does not build a cash value.
The period the insurance company extends to the policy owner before the policy lapses due to nonpayment.
The number of deaths in a population or in a sub-group of the population.
The process of evaluating an insurance application based on the applicant's age, sex, smoking status, driving record, and other health and lifestyle considerations, then issuing insurance policies based on the responses.
Term life insurance where the beneficiary of the policy is a creditor.
An individual or company to whom you owe money.
Decreasing Term Insurance
A type of creditor insurance, such as mortgage life insurance, where the life insurance face amount decreases each time a regular payment is made on debt that is amortized over a period of time.
Group Term Insurance
Term insurance provided to a designated group of people with a common bond that generally has lower-than-typical premiums.
Life insurance that continues to provide insurance for as long as premiums are paid.
Cost of Insurance
The insurance-related expenses incurred by a life insurance company to provide the actual death benefit, sometimes referred to as the pure cost of dying.
The portion of the premium in excess of insurance-related and company expenses that is invested by the insurance company on behalf of the policy owner.
The total amount paid tax-free to the beneficiary on the death of the policy owner.
Whole Life Insurance
A form of permanent life insurance that builds cash value based on a fixed premium that is payable for the life of the insured.
Universal Life Insurance
A form of permanent life insurance for which you can decide to invest the cash value portion in a variety of investments.
The options available to a policy owner who would like to discontinue or cancel a policy that has cash value.
Term to 100 Insurance
A form of permanent life insurance that does not build cash value.
A life insurance policy that is eligible to receive policy dividends.
A life insurance policy that is not eligible to receive policy dividends.
A refund of premiums that occurs when the long-term assumptions the insurance company made with respect to the cost of insurance, company expenses, and investment returns to have changed.
A general formula that determines how much life insurance is needed based on the policyholder's annual income.
Budget Method (or needs method)
A method that determines how much life insurance is needed based on the household's future expected expenses and current financial situation.
The process of completing a reinstatement application to restore a policy that is in lapse status.
Living Benefits (accelerated death benefits)
Benefits that allow the policyholder to receive a portion of the death benefits prior to death.
Allows you to renew your policy for another term once the existing term expires.
Allows you to convert your term insurance policy into a whole life policy that will be in effect for the rest of your life.
Options that allow you to customize a life insurance policy to your specific needs.
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