7 Flashcards
Requires entire premium to be paid in one lump sum at policy’s inception
Single premium whole life
Only requires payment of premium at inception
Provides ins protection for life of insured
Matures at 100
Single premium whole life
Designed to provide with best of both worlds permanent and term
Adjustable life
Example of a limited pay life policy
Life paid up at 65
Paid by time insured reached age 65 nd endows when they turn 100
Limited pay whole life premiums
With limited pay whole life
The premium paying period is limited not the
Maturity
20 pay whole pay life policy in order for policy to pay death benefit to beneficiary
Premiums must be paid
20 years or until death
Whichever first
All premiums necessary to cause policy to endow at age 100 are paid during first 20 years
20 pay life policy
All premiums paid during first 20 but if insured dies before all of planned are paid beneficiary will rec face amount as death benefit
20 pay life policy
Which policy generates immediate cash value
Single premium
Endows doe face amount of policy If insured lives until 100 (generates immediate cash value due to lump sum to insurer)
Spwl single premium whole life
Premiums for coverage will be completely paid well before 100
Limited pay policies
Insd has ins policy that requires only premiums for specified number of years
Limited pay life
Example of limited pay life policy
Life paid up by 65
Premium payments cease at 65 and coverage continues until 100
Limited pay whole life
