Chapter 3 Flashcards
The maturity date at which the cash value equals the face amount
Endow
Face Amount
The amount of protection stated in a policy that is payable upon death
Cash Value
An accumulated value in whole life polices that is available for policy loans and at surrender
Rider
Added benefit attached to the policy for a small additional premium
Term is _____
Temporary
Juvenile Policy is written on _____
The life of a minor
Jumping Juvenile
Automatically increases in face amount at a specific age
Joint life or
First to Die
Joint Survivorship or
Last to Die
A level term policy means that the ______ remains the same throughout the lifetime of the policy
Policy Proceeds
Current Assumption or Interest-Sensitive Whole Life
Guaranteed minimum death benefit but may increased based on the growth of the cash value
Indexed Universal Life (Equity Indexed)
Policyowner decides the percentage of cash value that is invested in traditional fixed income securities
Universal Life (Flexible Premium Adjustable Life Insurance)
Insurance protection and savings element (cash value) that grows on a tax-deferred basis
Death benefits Increase or decrease based on stock market performance
Guaranteed minimum death benefits
a choice of sub accounts
fixed permium
Variable Life
_________ does not have a general account, only a separate account.
Variable Universal life
What does a long-term care rider do that a Living Needs (Terminal Illness) rider does not?
Provides up to 100% of the death benefit in a daily or monthly amount for the non-hospital expenses of a chronically ill person who cannot perform any two of the six activities of daily living
Most group life insurance has a ______ term death benefit
Level
All premiums paid to a Universal Life Policy are placed in the policy’s cash value account. The mortality charge (cost of protection) and expenses are then deducted from the cash value account.
Universal Life
It allows for adjusting the mortality table used during the policy’s lifetime
Adjustable Life Policy
Which rider allows a disabled insured policyowner to forgo future premiums on his or her whole life insurance policy while continuing to enjoy full policy benefits?
Waiver of Premium
If a policyowner wants to increase the death benefit of an Adjustable Life Insurance policy, what is required?
Prove of insurability for the increase
If a father were to add a Child Rider to a policy to cover his children, when would coverage become effective for a newborn?
At 14 or 15 days of age
A Life Settlement is like a Viatical Settlement except it does not involve a _______ insured
Terminally ill
_______ policies have no interest rate or death benefit guarantees
Variable Universal Life (VUL)
________insurance has a current interest rate which is generally higher than the guaranteed minimum interest rate. It depends on the interest rates the insurer can earn on the assets in its general account.
Universal Life
The net amount at risk in an Ordinary Whole Life Insurance Policy _________ over the life of the policy.
Decreases
______ Has a guaranteed minimum face ammount
Variable Whole Life
Premium is fixed and level
Ordinary Whole Life
