6 Flashcards
Which of following statements is correct regarding whole life policy
Entitled to policy loans
Offer level premium based on issue age
Guaranteed
Level death benefit
Cash value
Scheduled to equal face amount at age 100 and living benefits
Straight life premium offers
Level annual premium for life of insured
What is not a type of whole life
Level term
Policyowner is entitled to loans
whole life policy
Of the common whole life policies
Straight life has lowest annual premium
Limited pay whole life designed so that premiums for coverage
Will be completely paid up before age 100
Common version of limited pay life
20 pay life completely paid for in 20 years life paid 65/paid up by 65
Cash value in limited pay policies
Builds up faster
Need protection after retirement but not wanting to be paying premiums at that time
Limited pay during working years
Designed to provide level death benefit for one time lump sum payment
Single premium whole life
Paid up after one premium and generates immediate cash
Single premium whole life spwl
Premium level, death benefit level increasing and decreasing no living benefits
Temporary
When would 20 pay whole life policy endow
When insured reached 100
Like straight life endows for face amount if insured lives to 100
Limited pay whole life
