Definition of Terms: Insurer - the insurance company Premium - monetary compensation -- Insured - person whose life is given protection Policy owner - person who pays for the policy and has a right to it. Beneficiaries - the recipient of the death benefits -- Sum Insured/Sum Assured - amount payable to the beneficiary Premium - amount of money in exchange for protection Policy- written contract of insurance between the insured and company. -- 3 risk covered by Life Insurance: Death Disability Old Age VUL- insurance policy that has both protection (life insurance) and savings (investment) -Fund value reliant on market performance therefore no guarantees. -Premium is used to purchase units in the Variable Life Fund managed by the company. -Also known as Investment-Linked, Unit-Liked and Equity-Linked. -Well-developed investment markets in UK and US PREMIUM: SUM Insured - Protection Fund Value-Investment - purchase units from equity, bond and balance fund. Single Premiu
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