Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Life & Health Insurance - General & Texas Specific > Chapter 2: Types of Life Policies > Flashcards

Chapter 2: Types of Life Policies Flashcards

1
Q

______ is temporary protection because it only provides coverage for a specific period of time. It also known as pure life insurance.

A

Term Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

______ policies provide the greatest amount of coverage for the lowest premium as compared to any other form of protection.

A

Term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Term insurance provides what is known as ______:

  1. If the insured dies during this term, the policy pays the death benefit to the beneficiary.
  2. If the policy is canceled or expires prior to the insured’s death, nothing is payable at the end of the term.
  3. There is no cash value or other living benefits.
A

Pure Death Protection

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

There are three basic types of term coverage available, based on how the ______ (______) changes during the policy term:

  1. ______
  2. ______
  3. ______
A
  1. Face Amount
  2. Death Benefit
  3. Level
  4. Increasing
  5. Decreasing
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Regardless of the type of term insurance purchased, the ______ is level throughout the term of the policy; only the amount of the ______ may fluctuate, depending on the type of term insurance.

A
  1. Premium

2. Death Benefit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

______ is the most common type of temporary protection purchased and refers to the death benefit that does not change throughout the life of the policy.

A

Level Term Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

______ term provides a level death benefit and a level premium during the policy term. For example, a $100,000 10-year policy will provide a $100,000 death benefit if the insured dies any time during the 10-year period.

A

Level Premium

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

______ is the purest form of term insurance. The death benefit remains level and the policy may be guaranteed to be renewable each year without proof of insurability, but the premium increases annually to the attained age, as the probability of death increases.

A

Annually Renewable Term (ART)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

______ policies feature a level premium and a death benefit that decreases each year over the duration of the policy term. It is primarily used when the amount of needed protection is time sensitive, or decreases over time.

A

Decreasing Term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

______ coverage is commonly purchased to insure the payment of a mortgage or other debts if the insured dies prematurely.

A

Decreasing Term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

______ life insurance is an increasing term insurance policy that pays an additional death benefit to the beneficiary equal to the amount of the premiums paid, either if the death occurs within a specified period of time or if the insured outlives the policy term.

A

Return of Premium (ROP)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Most ______ policies are renewable, convertible, or renewable and convertible (R&C).

A

Term Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

The ______ provision allows the policyowner the right to renew the coverage at the expiration date without evidence of insurability. The premium for the new term policy will be based on the insured’s ______.

A
  1. Renewable

2. Current Age

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

The ______ provision provides the policyowner with the right to convert the policy to a permanent insurance policy without evidence of insurability. The premium will be based on the insured’s attained age at the time of ______.

A
  1. Convertible

2. Conversion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

______ life insurance is a general term used to refer to various forms of life insurance policies that build cash value and remain in effect for the entire life of the insured (or until age ______) as long as the premium is paid.

A
  1. Permanent

2. 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

______ insurance provides lifetime protection, and includes a savings element (or cash value). These policies endow at the insured’s age ______, which means the cash value created by the accumulation of premium is scheduled to equal the face amount of the policy at that age.

A
  1. Whole Life

2. 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

The ______ key characteristic of a whole life insurance policy means that the premium is based on the issue age; therefore, it remains the same throughout the policy.

A

Level Premium

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

The ______ key characteristic of a whole life insurance policy means that the *______ is guaranteed and remains level for life.

A

Death Benefit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

The ______ key characteristic of a whole life insurance policy means that the *______, created by the accumulation of premium, is scheduled to equal the face amount of the policy when the insured reaches age 100 (the policy maturity date), and is paid out to the policyowner.

A

Cash Value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

The ______ key characteristic of a whole life insurance policy means that the policyowner can borrow against the cash value while the policy is in effect, or can receive the cash value when the policy is surrendered.

A

Living Benefits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

______ provides lifetime (permanent) protection and accumulates cash value.

A

Whole Life Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

The three basic forms of whole life insurance are ______ whole life, ______ whole life, and ______ whole life; however, other forms and combination plans may also be available.

A
  1. Straight
  2. Limited-Pay
  3. Single Premium
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

______ (also referred to as ______ or ______ whole life) is the basic whole life policy. The policyowner pays the premium from the time the policy is issued until the insured’s death or age 100 (whichever occurs first). Of the common whole life policies, this policy will have the ______ annual premium.

A
  1. Straight Life
  2. Ordinary Life
  3. Continuous Premium
  4. Lowest
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

______ whole life is designed so that the premiums for coverage will be completely paid-up well before age 100.

A

Limited-Pay

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

______ whole life is designed to provide a level death benefit to the insured’s age 100 for a one-time, lump-sum payment. The policy is completely paid-up after one premium and generates immediate cash.

A

Single Premium (SPWL)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Which type of insurance?

Type of protection: Temporary
Premium: Level
Death Benefit: Level, Increasing, or Decreasing
Living Benefits: Not available

A

Term Life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Which type of insurance?

Type of protection: Permanent until age 100
Premium: Level
Death Benefit: Level
Living Benefits: Cash values, policy loans, nonforfeiture values

A

Whole Life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

A(n) ______ policy can assume the form of either term or permanent insurance. Typically, the policyowner has the following options:

  1. Increase or decrease the premium or the premium-paying period.
  2. Increase or decrease the face amount.
  3. Change the period of protection.
A

Adjustable Life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

______ insurance is also known by the generic name of flexible premium adjustable life. That implies that the policyowner has the flexibility to increase the amount of premium paid into the policy and to later decrease it again.

A

Universal Life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

In a(n) ______ insurance policy, the policyowner may skip paying a premium and the policy will not lapse as long as there is sufficient cash value at the time to cover the monthly deductions for cost of insurance. If the cash value is too small, the policy will expire.

A

Universal Life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

The ______ is the amount needed to keep the Universal Life policy in force for the current year. Paying this will make the policy perform as an annually renewable term product.

A

Minimum Premium

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

The ______ is a recommended amount that should be paid on a Universal Life policy in order to cover the cost of insurance protection and to keep the policy in force throughout its lifetime.

A

Target Premium

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

A universal life policy has two components: a(n) ______ and a(n) ______. The ______ of a universal life policy is always annually renewable term insurance.

A
  1. Insurance Component

2. Cash Account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Universal life policies allow the partial ______ (partial ______) of the policy cash value, which will reduce the death benefit by the amount taken.

A
  1. Withdrawal

2. Surrender

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Universal life offers one of two death benefit options to the policy owner. Option A is the ______ death benefit option and Option B is the ______ death benefit option.

A
  1. Level

2. Increasing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Under ______ (______ Death Benefit option) of a Universal Life policy, the death benefit remains level while the cash value gradually increases, thereby lowering the pure insurance with the insurer in the later years.

A
  1. Option A

2. Level

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Under ______ (______ Death Benefit option) of a Universal Life policy, the death benefit includes the annual increase in cash value so that the death benefit gradually increases each year by the amount that the cash value increases.

A
  1. Option B

2. Increasing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

______ insurance is a level, fixed premium, investment-based product. These policies have fixed premiums, a guaranteed minimum death benefit, and a non-guaranteed, fluctuating cash value.

A

Variable Life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

______ is a combination of universal life and variable life. Like universal life, it provides the policyowner with flexible premiums and an adjustable death benefit. Like variable life, the policyowner rather than the insurer, decides where the net premiums (cash value) will be invested.

A

Variable Universal Life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

A producer must be licensed for both ______ and ______ in order to sell variable universal life.

A
  1. Securities

2. Life Insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

Variable life insurance products are dually registered by the ______ and ______ Government.

A
  1. State

2. Federal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

Variable contracts are considered ______, and are thus regulated by ______ and ______. Variable life insurance is also regulated by the Insurance Department as an insurance product.

A
  1. Securities
  2. the SEC
  3. FINRA
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

______ whole life, also referred to as ______ life, is a whole life policy that provides a guaranteed death benefit to age 100. This policy provides the same benefits as other traditional whole life policies with the added benefit of current interest rates, which may allow for either greater cash value accumulation or a shorter premium-paying period.

A
  1. Interest-Sensitive

2. Current Assumption

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

The main feature of ______ whole life (or ______ whole life) insurance is that the cash value is dependent upon the performance of the equity index, such as S&P 500, although there is a guaranteed minimum interest rate. The policy’s face amount increases annually to keep pace with inflation without requiring evidence of insurability.

A
  1. Indexed

2. Equity Index

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

If the policyowner of indexed life insurance plan assumes the inflation risk, the policy premiums ______ with the increases in the face amount. If the insurer assumes the risk, the premium remains ______.

A
  1. Increase

2. Level

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

Which policy?

Key Features: Can be Term or Whole Life; can convert from one to the other
Premium: Can be increased or decreased by policyowners
Face Amount: Flexible; set by policyowner with proof of insurability
Cash Value: Fixed rate of return; general account
Policy Loans: Can borrow cash value

A

Adjustable Life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

Which policy?

Key Features: Permanent insurance with renewable term protection component
Premium: Flexible; minimum or target
Face Amount: Flexible; set by policyowner with proof of insurability
Cash Value: Guaranteed at a minimum level; general account
Policy Loans: Can borrow cash value

A

Universal Life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

Which policy?

Key Features: Permanent insurance
Premium: Fixed (if Whole Life); flexible (if Universal Life)
Face Amount: Can increase or decrease to a stated minimum
Cash Value: Not guaranteed; separate account
Policy Loans: Can borrow cash value

A

Variable Life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

______ is a single policy that is designed to insure two or more lives. These policies can be in the form of term insurance or permanent insurance.

A

Joint Life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

Joint whole life functions similarly to an individual whole life policy with two major exceptions:

  1. The premium is based on a(n) ______ that is between the ages of the insureds.
  2. The death benefit is paid upon the ______ only.
A
  1. Joint Average Age

2. First Death

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

______ policies are used when there is a need for two or more persons to be protected; however, the need for the insurance is no longer present after the first of the insureds dies.

A

Joint Life

52
Q

Premium rates on a(n) ______ policy are determined by averaging the ages of both insureds.

A

Joint Life

53
Q

______ (also referred to as “______” or “______” policy) insures two or more lives for a premium that is based on a joint age and pays on the last death.

A
  1. Survivorship Life
  2. Second-To-Die
  3. Last Survivor
54
Q

______ policy is often used to offset the liability of the estate tax upon the death of the last insured.

A

Survivorship Life or Second-To-Die or Last Survivor

55
Q

______ = first to die; ______ = second to die (last survivor)

A
  1. Joint Life

2. Survivorship Life

56
Q

A(n) ______ is a contract that provides income for a specified period of years, or for life. It protects a person against outliving his or her money.

A

Annuity

57
Q

______ are not life insurance, but rather a vehicle for the accumulation of money and the liquidation of an estate.

A

Annuities

58
Q

Annuities use ______, which indicate the number of individuals within a specified group (e.g. males, females, smokers, nonsmokers) starting at a certain age, who are expected to be alive at a succeeding age.

A

Mortality Tables

59
Q

The ______ is the purchaser of the annuity contract, but not necessarily the one who receives the benefits. This individual, corporation, trust, or other legal entity has all of the rights, such as naming the beneficiary and surrendering the annuity.

A

Owner

60
Q

The ______ is the person who receives benefits or payments from the annuity, whose life expectancy is taken into consideration, and for whom the annuity is written. This individual does not need to be the owner but most often is; he or she must be a natural person and not a corporation, trust, or legal entity.

A

Annuitant

61
Q

Because annuities are based on the life expectancy of an ______, this individual must be a natural person, regardless of who owns the policy.

A

Annuitant

62
Q

The ______ is the person who receives annuity assets (either the amount paid into the annuity or the cash value, whichever is greater) if the annuitant dies during the accumulation period, or to whom the balance of annuity benefits is paid out.

A

Beneficiary

63
Q

The ______, also known as the ______, is the period of time over which the owner makes payments (premiums) into an annuity.

A
  1. Accumulation Period

2. Pay-In Period

64
Q

The ______, also known as the ______, ______, or ______, is the time during which the sum that has been accumulated during the accumulation period is converted into a stream of income payments to the annuitant.

A
  1. Annuity Period
  2. Annuitization Period
  3. Liquidation Period
  4. Pay-Out Period
65
Q

The ______ is the time when the annuity benefit payouts begin (trigger for benefits).

A

Annuitization Date

66
Q

During the ______ period, funds are paid INTO the annuity. During the ______, funds are paid OUT to the annuitant.

A
  1. Accumulation Period

2. Annuity Period

67
Q

The annuity income amount is based upon the following:

  1. The amount of ______ paid or ______ accumulated.
  2. The frequency of the ______.
  3. Interest rate.
  4. The ______’s age and gender.
A
  1. Premium
  2. Cash Value
  3. Payment
  4. Annuitant
68
Q

Annuities:

Shorter life expectancy = ______ benefit; longer life expectancy = ______ benefit.

A
  1. Higher

2. Lower

69
Q

Annuities are purchased, for the most part, to provide or supplement ______ and are also purchased to fund or to help fund a(n) ______.

A
  1. Retirement Income

2. College Education

70
Q

Annuities are also used to provide what is known as ______, which would take on the form of a court settlement arising from a civil lawsuit, income that is provided to the winner of a state lottery, or even settlement options for a life insurance policy.

A

Structured Settlements

71
Q

The basic function of an annuity is that of ______ a principal sum, regardless of how it was accumulated.

A

Liquidating

72
Q

Classification of ______:

  1. Premium payment method: single premium vs. periodic
  2. When income payments begin: immediate vs. deferred
  3. How premiums are invested: fixed vs. variable
  4. Disposing of proceeds: pure life, annuity certain, or life refund annuity
A

Annuities

73
Q

Annuities can be funded either by ______ (one-time lump-sum payment) or through ______ in which the premiums are paid in installments over a period of time.

A
  1. Single Premium

2. Periodic Payments

74
Q

Periodic payment annuities can be either ______, in which the annuitant/owner pays a fixed installment, or ______, in which the amount and frequency of each installment varies.

A
  1. Level Premium

2. Flexible Premium

75
Q

A(n) ______ provides the following features:

  1. Guaranteed minimum rate of interest to be credited to the purchase payment(s).
  2. Income (annuity) payments that do not vary from one payment to the next.
  3. The insurance company guarantees the specified dollar amount for each payment and the length of the period of payments as determined by the settlement option chosen by the annuitant.
A

Fixed Annuity

76
Q

With ______, the annuitant knows the exact amount of each payment received from the annuity during the annuity period; this is called ______.

A
  1. Fixed Annuities

2. Level Benefit Payment Amount

77
Q

A disadvantage to fixed annuities is that the ______ that they afford may be eroded over time due to inflation.

A

Purchasing Power

78
Q

A(n) ______ serves as a hedge against inflation, and is variable from the standpoint that the annuitant may receive different rates of return on the funds that are paid into the annuity.

A

Variable Annuity

79
Q

The payments that the annuitant makes into the variable annuity are invested in the insurer’s ______, not their general account.

A

Separate Account

80
Q

In a(n) ______, the issuing insurance company does not guarantee a minimum interest rate.

A

Variable Annuity

81
Q

A variable annuity is considered a(n) ______ and is regulated by the SEC in addition to state insurance regulations.

A

Security

82
Q

Variable premiums purchase ______ in the fund, which is similar to buying shares in a Mutual Fund. These represent ownership interest in the separate account.

A

Accumulation Units

83
Q

Upon annuitization, the accumulation units are converted to ______. Income is then paid to the annuitant based on the value of these units. The number of units received remains level but the unit values will fluctuate.

A

Annuity Units

84
Q

Which type of annuity?

Interest Rate: Guaranteed by insurer
Underlying Investment: General account (safe, conservative)
License Needed: Life insurance
Expenses: Guaranteed
Income Payment: Guaranteed
A

Fixed Annuity

85
Q

Which type of annuity?

Interest Rate: No guarantee
Underlying Investment: Separate account (equities, no guarantee)
License Needed: Life insurance PLUS securities
Expenses: Guaranteed
Income Payment: No guarantee

A

Variable Annuity

86
Q

______ are fixed annuities that invest on a relatively aggressive basis to aim for higher returns. Like a fixed annuity, this annuity has a guaranteed minimum interest rate. The current interest rate that is actually credited is often tied to a familiar index like the S&P 500.

A

Index (or Equity Indexed) Annuities

87
Q

A(n) ______ annuity is one that is purchased with a single, lump-sum payment and provides income payments that start within ______ from the date of purchase. This type of annuity is commonly known as a SPIA.

A
  1. Immediate
  2. One Year

SPIA = Single Premium Immediate Annuity

88
Q

A(n) ______ annuity is an annuity in which the income payments begin sometime after ______ from the date of purchase. These can be funded with either a single lump sum (SPDA) or through periodic payments (FPDA).

A
  1. Deferred
  2. One Year

SPDA = Single Premium Deferred Annuities
FPDA - Flexible Premium Deferred Annuities

89
Q

A(n) ______ policy’s limits increase each year by the amount of premium paid. This policy is sometimes called a return of premium policy.

A

Increasing Term

90
Q

______ insurance is renewable without a physical examination, up to a certain age.

A

Term

91
Q

______ insurance may be converted to ______, but not the reverse. Conversion is based on the insured’s current age.

A
  1. Term

2. Whole Life

92
Q

In a(n) ______ policy, the premium and the amount of coverage are level throughout the term.

A

Level Term

93
Q

On a(n) ______ policy, the premium will increase every year, although the face amount will remain the same.

A

Annual Renewable Level Term

94
Q

It is the face amount that decreases on a(n) ______ policy, not the premium.

A

Decreasing Term

95
Q

Premiums used to purchase ______ insurance are kept in the insurance company’s general account, which is invested more conservatively.

A

Whole Life

96
Q

______ policies must contain a table showing their guaranteed cash value at the end of each year (anniversary date) for the first 20 years. The ______ and ______ used in determining those values must also be shown.

A
  1. Whole Life
  2. Mortality Table
  3. Interest Rate
97
Q

A(n) ______ insurance policy is designed to provide protection until a person dies or reaches age 100.

A

Whole Life

98
Q

______ and ______ both reach maturity at the same time (age 100).

A
  1. Whole Life

2. Limited-Pay Life

99
Q

A(n) ______ may buy a policy that is paid up for life. This type of policy has an immediate ______.

A
  1. Single Premium

2. Cash Value

100
Q

______ policies, though paid up earlier, do not mature until the insured dies or reaches age 100, whichever occurs first.

A

Limited-Pay Whole Life

101
Q

On a(n) ______, the cash value will equal the face amount at maturity (age 100).

A

20-Pay Life

102
Q

A(n) ______ policy refers to a whole life policy in which the premium will be paid up in 20 years.

A

20-Pay Life

103
Q

A(n) ______ insurance policy has a choice of death benefits: option A or B.

A

Universal Life

Option A (Level Death Benefit): The death benefit remains level while the cash value gradually increases, thereby lowering the pure insurance with the insurer in the later years. This results in an IRS corridor.

Option B (Increasing Death Benefit): The death benefit includes the annual increase in cash value so that the death benefit gradually increases each year by the amount that the cash value increases.

104
Q

Policyowners may skip, reduce, or increase their premium payments on ______ insurance policies. The policy will not lapse as long a there is enough ______ to cover expense deductions.

A
  1. Universal Life

2. Cash Value

105
Q

______ offers flexible premiums and a minimum guaranteed rate of return.

A

Universal Life

106
Q

______, ______, and ______ are all interest-sensitive whole life products.

A
  1. Universal Life
  2. Variable Life
  3. Variable/Universal Life
107
Q

______ products have no guarantees and not backed by the state guaranty fund.

A

Variable

108
Q

An agent must be registered with FINRA in order to sell a(n) ______ product.

A

Variable

109
Q

______ products provide a hedge against inflation.

A

Variable Life

110
Q

Premium funds invested in a variable life contract or variable annuity must be kept in the insurance company’s ______, which is similar to a mutual fund.

A

Separate Account

111
Q

______ is an insurance and a securities product; thus, it is regulated on the state level by the department of insurance and on the federal level by the SEC.

A

Variable Whole Life

112
Q

Applicants with incomes that tend to fluctuate may benefit most from purchasing a(n) ______ policy.

A

Adjustable Whole Life

113
Q

A(n) ______ policy pays only when the first insured dies. A(n) ______ policy pays only when the second insured dies.

A
  1. Joint Life

2. Joint and Survivor Life

114
Q

______ insurance is commonly used in estate planning so the death benefit of the policy can be used to pay estate taxes when due.

A

Survivorship Life

115
Q

______ is commonly purchased to fund estate taxes.

A

Survivorship Life

116
Q

______ are the opposite of life insurance. Life insurance creates an estate, while ______ systematically liquidate an estate over a period of time.

A

Annuities

117
Q

A(n) ______ cannot outlive the income from an annuity.

A

Annuitant

118
Q

A(n) ______ would be funded with a single premium and would begin payments one month later.

A

Immediate Annuity

119
Q

______ guarantee a fixed rate of return and are backed by the state guaranty fund.

A

Fixed Annuities

120
Q

On a(n) ______, during the payout period, the annuity is valued in annuity units.

A

Variable Annuity

121
Q

A(n) ______ has the least amount of risk to the annuitant.

A

Refund Annuity

122
Q

If a(n) ______ dies during the accumulation period of an annuity, the account value will be paid to the ______ or to the estate.

A
  1. Annuitant

2. Beneficiary

123
Q

A(n) ______ annuity, also known as a(n) ______ or ______ annuity, has no beneficiary and is the most risky option for the annuitant.

A
  1. Life Income
  2. Straight
  3. Pure Life
124
Q

A(n) ______ annuity would pay while either party is alive.

A

Joint and Survivor

125
Q

______ are different than mortality tables since there is no insurance protection.

A

Annuity Tables

126
Q

______ are often used as life insurance settlement options.

A

Annuities

127
Q

A(n) ______ does not involve underwriting.

A

Annuity

Life & Health Insurance - General & Texas Specific (15 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions