FIN RISK MANAG Primerica Life Insurance Latest Update

Risk correct answeruncertainty of a financial loss; 2 types
Two typed of risks correct answerPure (Insurable) and speculative (uninsurable)
Benefits of purchasing insurance? correct answerYou get to transfer financial risk left after passing to
insurance company
Law of large numbers correct answerthe larger the size of the group the more accurately the experience
aka predicted losses of that group can be predicted
Policyowner correct answerperson who owns policy, pays premiums, and chooses the beneficiary
Insured correct answerthe life of the person the policy covers (could be policyowner)
Insurer correct answerthe insurance company which issues the policy and pays the death benefit to the
beneficiary upon the death of the insured
Beneficiary correct answerthe person who receives death proceeds
What does having life insurance create or do? correct answerCreates an immediate estate for the
beneficiary which could help pay for daily expenses, mortgage, or college etc
Estate correct answerthe net worth of a person; things you own minus things you owe
Premium correct answerthe amount you pay for coverage aka the money that goes into the policy;
money policy owner pays to insurer