Unit 7: Insurance – Lessons 1~5

Beneficiary

• The person or entity that is legally designated to receive the benefits from a life insurance or a will after the death of the insured.

• A person who pays premiums for an insurance policy.

• An individual who is responsible for managing an estate after someone's death.

• A legal document outlining the distribution of assets after death.

Insurance Agent

• A person who provides financial advice to clients.

• A person who sells, solicits, or negotiates insurance on behalf of a client for compensation.

• A person who manages investment portfolios for clients.

• A person who underwrites insurance policies for companies.

Premium

• The amount paid for an insurance policy.

• A type of insurance coverage.

• A discount on insurance rates.

• The total value of an insurance claim.

Policy Holder

• A consumer who purchases the policy.

• A financial advisor who sells the policy.

• An insurance company that issues the policy.

• A beneficiary named in the policy.

Cash value

• Money equal to the cost of replacing lost, stolen, or damaged property after depreciation.

• The total amount of money available in a bank account.

• The value of cash on hand at any given time.

• The amount of money that can be borrowed against an asset.

Insurance protection tools

• A cushion of support to a family's financial state should death, devastation, accident, illness or disability happen to the person who brings in the money and income for a family.

• A method to increase a family's wealth through investments and savings.

• A strategy to avoid all financial risks and ensure complete safety.

• A legal agreement that guarantees a family will never face any financial loss.

Financial planning tools

• Instruments used to meet current and future financial goals through a sound financial plan.

• Tools for managing daily expenses and budgeting.

• Software applications for tracking stock market trends.

• Methods for reducing tax liabilities effectively.

Proceeds

• The total amount before any deductions.

• The net amount received after deduction of any discount or charges.

• The amount paid for a service or product.

• The initial amount before any fees or taxes.

Insurance Policy

• A contract between the individual and the insurer, specifying the terms of the insurance arrangements.

• A document that outlines the benefits of a health plan.

• A legal agreement to provide financial support in case of accidents.

• A summary of the coverage limits for various types of insurance.

Insurance

• An arrangement between an individual (consumer) and an insurer (insurance company) to protect the individual against risk.

• A type of investment that guarantees high returns.

• A legal contract that allows individuals to avoid all financial losses.

• A government program that provides free healthcare to all citizens.