Page 29 - Life Assurance

only one plan. The employee who wants only
term insurance pays only the mortality and
expense charges. The employee who wants to
accumulate cash values must pay higher
premiums. Under the second approach, two
plans are used- term insurance and universal life
insurance.

b- Amount of insurance: Universal life
insurance is issued on a guaranteed basis up to
certain limits with no evidence of insurability.
Employees generally select the amount of
guaranteed coverage equal to some multiple of
their salaries, such as one to five times their
annual salary.

c- Mortality and expense charges: Most
group universal life plans have guaranteed
mortality charges for three years; after that time,
the group is experience - rated.

5/3/3 Credit Life Insurance:

Credit life insurance is protection offered in
connection with installment sales of consumer
durable such as automobiles.

As in group insurance, credit life coverage
is on a decreasing term plan, arranged to expire
when the installment sales contract is paid off.
The cost of protection is incorporated into the

129 Life51/life/life 08