11 Flashcards
To sell variable life must have
Finra securities life ins
Not sec
All true of variable products except
Invested in general acct
Cv not guaranteed
Owner best investment risk
Minimum death benefit guaranteed
General acct
Interest sensitive whole life aka
Current assumption life
Interest sensitive whole life provides
Guaranteed death benefit to 100 age
Death benefit in variable univ life policy
Depends in performance of sep acct
What entity does not regulate variable life policies
Guaranty association
In variable univ life policy
Death benefit is fixed
Interest sensitive whole life provides same benefits as other traditional whole life policies
With added benefit of current int rates which may allow greater cash accumulation or shorter prem paying period
Equity index whole life aka
Indexed whole life
Indexed whole life main feature is
Cash value is dependent on perf of equity index such as sp 500
Face amount increases annually to keep pace with inflation as consumer price index increases w/o requiring evidence of insurability
Indexed whole life
Classified depending on whether policyowner or insurer assumes inflation risk
Indexed whole life policies
With indexed whole life
If owner assumes risk then policy premiums with increases in
Face amount
In indexed whole life
If insurer assumes risk
PreMium remains level
Premium Can be increases or decreased by policyowner
Faceamount Flexible set by policyowner with proof of insurability
Cash value fixed rate of return general acct
Policy loans can borrow cash value
Can be term or whole life can convert from one to other
Adjustable life