3.1 Terms

Question 1

attained age

Answer 1

the insured’s age at the time is the policy is renewed or replaced

Question 2

cash value

Answer 2

the policy’s savings element or living benefit

Question 3

deferred

Answer 3

withheld or postponed until a specific time or event in the future

Question 4

endow

Answer 4

to have cash value of a whole life policy reach the contractual face value

Question 5

face amount

Answer 5

the amount of benefit stated in the life insurance policy

Question 6

fixed insurance products

Answer 6

contracts that offer guaranteed minimum or fixed benefits

Question 7

lapse

Answer 7

policy termination due to nonpayment of premium

Question 8

level premium

Answer 8

premium that does not change through the life of the policy

Question 9

nonforfeiture values

Answer 9

benefits in a life insurance policy that the policy owner cannot lose if the policy is surrendered or lapses

Question 10

policy maturity

Answer 10

in life policies, the time when the face values is paid out

Question 11

securities

Answer 11

financial instruments that may trade for value (for example, stocks, bonds, options)

Question 12

variable life insurance products

Answer 12

contracts in which the cash values accumulate based on a specific portfolio of stocks without guarantees of performance.