9 Flashcards
Recommended amnt to be paid in order to cover cost of ins and keep policy in force thru its lifetime
Target prem
Purpose of target prem
Keep policy In force
Allows beneficiary to collect both dbenefit and cash value upon death of insured
Option b
Includes annual increase in cash value so that death benefit increases by amount that cash value increases
Under option b
At any point in time total dbenefit will always be equal to face amount of policy plus current amnt of cash value
Option b
Policy owner bears investment risk
In variable contracts
Purchased variable life ins policy
50000 policy
Stock performance declined fell to 10000
50000 paid out bc despite investments cannot be lower than initial benefit amnt
Cash value of variable life ins policy is
Not guarantee
Partial withdrawal from univ life policy taxed in
Interest
Determines cash value of variable life policy
Performance is policy portfolio
Cash value of variable life policy
Fluctuates with performance of portfolio which premiums have been invested by insurer
Which univ life has gradually increasing CASH value and level death benefit
Option a
Univ life policyowner can skip premium payment as long as
Policy contains sufficient cash value to cover cost of ins
For variable products assets must be
Kept in separate acct
If agent wishes to sell variable life policies what license must agent obtain
Securities
