P1P2 - NAIC - Life Insurance Buyer's Guide

  • Even if there is enough in your account (SIV-A) to pay the premiums (P2-B), 
    continuing to pay premiums (P1-C) yourself means that you build up more cash value (SIV-D) .

2007 - NAIC Life Insurance Buyer's Guide  - 10p

 

Policy Mechanics / Works P1 E1 SIV i CIV P2 E2 DB-A DB-CP
 
  • premiums (P1-C)
 
  • your account (SIV-A)
  • cash value (SIV-D)
    
  • the premiums (P2-B)
      

 

⇒  2018 - NAIC - Life Insurance Buyer's Guide - 8p

  • Life insurance pays a death benefit (DB-A-1) if you die while the policy is in effect (DB-CP-2), in exchange for premiums you pay (P1 or P2.? - 3/4)  before your death.
  • Whole Life vs. Universal Life
    • Whole life and universal life insurance are two types of cash value insurance.
    • A key difference between the two is how you pay (P1/P2? - 5/6) for the coverage (CIV / DB-A / DB-CP - 7/8/9).
    • You typically pay premiums (P1-10) for whole life insurance according to a set schedule. (p1-11)
    • In a universal life policy, you can choose a flexible premium payment pattern (P1-12) as long as you pay enough(P1-13) to keep your policy in force( SIV->P2-14 / 15).

 

Policy Mechanics / Works

P1

E1

SIV

i

CIV

P2

E2

DB-A

DB-CP

 
  • premiums you pay (P1orP2.?-3/4)
  • how you pay (P1/P2? - 5/6)
  • premiums (P1-10)
  • according to a set schedule. (P1-11)
  • flexible premium payment pattern (P1-12)
  • pay enough (P1-13)

 
  • keep your policy in force (SIV->P2-12 / 13)

 

the coverage (CIV / DB-A / DB-CP - 7/8/9)
  • premiums you pay (P1orP2.?-3/4)
  • how you pay (P1/P2? - 5/6)
  • keep your policy in force (SIV->P2-1 14 / 15).

 
  • death benefit(DB-A-1)
  • the coverage (CIV / DB-A / DB-CP - 7/8/9)
  • in effect(DB-CP-2) 
  • the coverage (CIV / DB-A / DB-CP - 7/8/9)

 

⇒  1984-1995 -  NAIC / ACLI -  Life Insurance Buyers Guide - 5p 

  • Other policies may have special features which allow flexibility as to premiums (P1-1)  and coverage (DB-CP-2) .
    • Some let you choose the death benefit (DB-A-3) you want and the premium amount (P1-4) you can pay.
    • The kind of Insurance and coverage period (DB-CP-5) are determined by these choices. 
  • One kind of flexible premium Policy, often called universal life, lets you vary your premium payments (P1-6)  every year and even skip a payment (P1-7) if you wish.
    • The premiums you pay (P1-8) (less expense charges (E1-9)) go into policy account (SIV-10) that earns interest (i-11) and charges (P2-12) for the insurance (CIV-13) are deducted from the account (SIV-14). 
    • Here, insurance (DB-A-15) continues as long as (DB-CP-16) there is enough money in the account (SIV-17) to pay the insurance charges (P2-18).
  

 

Polic Mechanics / Cash Flow Elements / Works P1 E1 SIV i CIV P2 E2 DB-A DB-CP
 
  • premiums (P1-1) 
  • the premium (P1-4)
  • your premium payments (P1-6)
  • skip a payment (P1-7)
  • The premiums you pay (P1-8)
  • less expense charges (E1-9)
  • policy account (SIV-10)
  • the account (SIV-14)
  • earns interest (i-11)
  • the insurance (CIV-13)
  • pay the insurance charges (P2-18)

 
  • death benefit (DB-A-3) 
  • insurance (DB-A-15)
  • coverage (DB-CP-2)
  • coverage period (DB-CP-5)
  • continues as long as (DB-CP-16)

 

Bonk P1 E1 SIV i CIV P2 E2 DB-A DB-CP