1. Componential analysis Whole of life insurance

2. Whole (of) life insurance Whole life insurance offers the policyholder a cash value account and tax-deferred cash accumulation and pays a death benefit directly to the named beneficiary. The policy is in effect during the lifetime of the insured and provides permanent security for all your dependents while building a cash value account. […] There are several different types of whole policies. They are as follows:

3. Single premium whole life Single premium whole life policy is when the policyholder pays whole life premium in one lump sum. The only benefit to this policy is tax advantages. The regular life policy grows in response to the interest rate and the growth is then tax deferred. If a client wants to shelter some money and would want death benefits, the single premium would be an excellent choice.

4. Continuous premium life Continuous premium life (aka straight life) policy is the most common whole life policies. This policy accumulates in cash value and provides lifetime protection with level premium payments up to the age of 100. This policy offers the lowest regular premium cost among the permanent policies.

5. Limited pay Limited-Pay policies are paid over a limited period of time. Each type of plan is named after the terms of the payment period (i.e., "20-Pay Life," or "Life Paid-up at 65"). The payment amounts are determined according to length of the payment period. In addition, the insurer must pay the full, insured amount to the beneficiary in the event that the policyholder dies, even if the insured has only made one payment to the policy.

6. Current assumption whole life  Current Assumption Whole Life  (aka Interest Sensitive Whole Life) premium payments fluctuate according to the current interest rates. The premiums are adjusted upon renewal of the policy.

7. Preparing the analysis 1.All the forms of whole of life insurance inherit all the features of the hyperonym. 2.The sub-classes all have additional features. 3.Certain features distinguish the various sub-classes. 4.These features should be expressed as present or absent.

8. Distinguishing feature? the premium –Sum paid by the policyholder to the insurer in return for cover Two features relative to the premium are mentioned… which ones ?

9. When the premium is paid in a lump sum over the whole of the life over a set period

10. Premium constant or variable? Single premium Continuous premium Limited pay –Constant Current assumption - variable

11. Whole of life: features WoL lumpS WoL SetP rate C single++-- continuous +-+-+ limited p +--++ current a ++?- WoL: Whole of life, lump Sum, set Premium rate constant

12. definitions single premium whole life insurance –whole of life insurance for which the premium is paid in one lump sum continuous premium whole life insurance –whole of life insurance for which the premium is paid over the whole period (or until the age of 100) limited pay insurance –whole of life insurance for which the premium is paid over a period defined in the policy current assumption insurance –whole of life insurance for which the rate of the premium is indexed on interest rates