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Table of Content
Table of Contents
Introduction .............................................................................................................................................. 4 Class of Business 3: Long Term .......................................................................................................... 4 Table 1: Class of Business 3: Long Term ........................................................................................... 4 What is a Policy? .................................................................................................................................... 5 What is a Long Term Policy? ................................................................................................................ 5 Long Term Insurance Policies .......................................................................................................... 6 Pure risk and pure investment policies .......................................................................................... 6 COB 3.2: LIFE RISK POLICIES ............................................................................................................. 7 What is a Life Risk Policy .................................................................................................................. 8 Whole life risk policy .......................................................................................................................... 8 Term risk policy ................................................................................................................................... 8 Insurance Risk? ...................................................................................................................................... 8 Risks that can be covered by long term insurance policies ....................................................... 8 Income or capital needs ..................................................................................................................... 9 Life cover .............................................................................................................................................. 9 Disability cover .................................................................................................................................... 9 Impairment cover ...............................................................................................................................10 Functional impairment ..................................................................................................................11 Physical impairment ......................................................................................................................11 Dread Disease cover .........................................................................................................................11 Accident cover ....................................................................................................................................12 ASPECTS OF RISK INSURANCE .........................................................................................................13 Premiums and pricing .......................................................................................................................13 Guarantees ..........................................................................................................................................14 Premium patterns ...............................................................................................................................14 Underwriting .......................................................................................................................................15 Medical underwriting .....................................................................................................................15 Occupational underwriting ...........................................................................................................15 Part-time activities Underwriting .................................................................................................15 Exclusions and loadings ..................................................................................................................15 Medical exclusion ...........................................................................................................................16 Cessions ..................................................................................................................................................16 Beneficiaries and nominees ................................................................................................................17 Benefits ....................................................................................................................................................17