List the Four Basic Types of Planning

question 28

Short Answer

List the four basic types of planning.

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Definitions:

Mortality Table

A statistical table showing the probability of death for individuals at each age, used by insurance companies to determine premiums.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Premiums

The amounts paid regularly to an insurance company in exchange for coverage, protecting against financial losses.

Life Insurance

A type of insurance that pays a specified amount upon the policy holder’s death; a creditor often requires a borrower to take out life insurance to cover the loan in the event the borrower dies before the loan is paid.