NC Life Insurance |Complete Questions with 100% Corect Answers

NC Life Insurance Cash Value Money accumulation in a permanent policy which the policy owner may borrow as a policy loan or receive if the policy is surrendered before maturity. Upon maturity or endowment the cash value is paid to the policy owner. Cash value may be used as a source of supplemental income. Non- Participating Policies Insurance policies which do not pay dividends to policy owners. Participating Policies Policies that may pay annual dividends to policy owners. Human Life Value Approach This approach measures the actual future earnings and services of a person at risk of coverage as determined by the value of the the individual to his/her dependents. Human Life Value Factors Factors: 1. After-tax annual salary, 2. Annual expenses (no hobbies), 3. Value of Personal Assets, 4. Years remaining of individuals expected ability to work, 5. Ages of all family members, 6. Value of the individual's dollar as it depreciates over time, 7. Present salaries of all wage earners. Needs Analysis Approach This approach determines a need for coverage upon the premature death of an individual. It always assumes the death of an individual to be immediate. Calculates all financial needs caused by an immediate death. Buy-Sell Agreement Business use of Life Insurance where partners in a business buy life insurance on each other. They agree that when one of them dies the survivors have the right to purchase the deceased partner's share of the business. The death benefit from the insurance is used to finance the purchase. (Cross Purchase Plan, Entity Plan) Key Person Insurance protects against the loss of a key employee or key executive by making the business the beneficiary if a key person dies. The business is the owner, premium payor, and beneficiary. Deferred Compensation Insurance Payment for services under any employer-sponsored plan or arrangement that allows an employee (for tax-related purposes) to defer income to the future. The employer is the policy owner and beneficiary. Split-Dollar Plan a life policy in which employee and employer split the premium payments and if the employee dies while working for this employer, the employer receives the total of premiums paid. The remaining