7

7.1 Life Insurance

1. Calculate life insurance premiums
2. Calculate the net cost of life insurance

3. Calculate the cash and loan values of a life insurance policy

4. Life insurance is a way of protecting your family from financial hardship when you die.

   • The insured: the person whose life is covered
   • The insurer: the insurance company
   • The contract: states the amount of insurance to be paid upon the death of the insured, or the death benefits of the policy.
5. Beneficiary s: When the insured dies, death benefits are paid to the beneficiary. The beneficiary is the person named in the policy to receive the death benefits.