01.Core Concepts

Ordinary life insurance is a level-premium policy that accumulates cash values and provides lifetime protection to age 121 Premiums are level throughout the premium-paying period The excess premiums paid during the early years are used to supplement the inadequate premiums paid during the later years of the policy The insurer’s legal reserve is a liability that must be offset by sufficient financial assets The net amount at risk is the difference between the legal reserve and the face amount of insurance ‹#›