Insurance Coverages and Retirement Products

A product is described in plain English (e.g., "20-year term") and you must identify key features and how they differ from a similar product.

For each product, identify the death benefit pattern, premium pattern (level vs flexible), cash value features, and policyholder options (lapse, surrender, conversion). Compare on the same axes — for example, whole life vs universal life mainly differ on premium flexibility and cash value transparency. Map annuities by accumulation vs payout and by guarantee features.

Term: pure death benefit, no cash value. Whole life: level premium, builds cash value. Universal: flexible premium, transparent account value.

Several short-term insurance products are listed and you must compare their pricing periods, loss patterns, and key risk drivers.

For each product, identify the policy term (typically 6-12 months), the dominant frequency vs severity profile, and the regulatory framework. Auto liability is high-frequency, moderate-severity, regulated by state. Property is moderate-frequency with catastrophic tail risk. Health is high-frequency, moderate-severity with significant trend.

Short-term ≠ low risk; the policy renews, but the underlying liabilities can develop for years.

A defined benefit plan and a defined contribution plan are described and you must compare them on key dimensions.

Compare on who bears investment risk, how the benefit is determined (formula vs account balance), funding requirements, and portability. DB plans promise a benefit (often a percentage of final pay × years of service); DC plans promise contributions and let outcomes float. Map the benefit formula explicitly — e.g., 1.5% × FAS × YOS — to compute illustrative benefits.

DB: employer bears investment risk; DC: employee bears investment risk.