Personal Finance--Comparison

Terms

undefined, object

copy deck

Collateral Assignment Method: employee is considered owner of the policy
Collateral Assignment Method: employee purchases the life insurance directly
The Endorsement Method: the employer is the purchaser
The Endorsement Method: employer is owner of the insurance policy
Collateral Assignment Method: at the time of death, the employer would be repaid the amount of premium payments contributed to the policy
The Endorsement Method: there is a separate agreement between the employer and the insured employee defining the employees' rights in the insurance policy
The Endorsement Method: by endorsement, provides that the insured's beneficiaries have the right to the portion of the proceeds in excess of the cash-value (i.e., the at-risk portion)
Collateral Assignment Method: employer can pay the premiums and be confident of repayment because the employer holds the policy as collateral.
The Endorsement Method: employer typically names itself as the beneficiary of an amount of the proceeds equal to the cash value of the policy at the time of the insured's death
Collateral Assignment Method: the balance after the employer receives the contributed premium payments, would be paid to the employee's designated beneficiaries
Collateral Assignment Method: employee makes a collateral assignment of the policy to the employer in return for the employer to pay premiums, or part of the premium, on the policy.

Number of cards 11