Chapter 3(Term life insurance) Flashcards
____________ is temporary protection because it only provides coverage for a specific period of time. It is also known as pure life insurance
Term insurance
Term insurance provides what is known as _______________
pure death protection
_________ provides the greatest amount of coverage for the lowest premium. Term insurance has no cash value.
Term insurance
There are three basic types of term coverage available, based on how the face amount (death benefit) changes during the policy term what are they?
- Level
- Increasing
- Decreasing
____________ is the most common type of temporary protection purchased. Level term insurance is the most common type of temporary protection purchased
Level term insurance
________ in level term insurance refers to the death benefit, which does NOT change.
“Level”
____________ term, as the name implies, provides a level death benefit and a level premium during the policy term.
Level premium
________________ is the purest form of term insurance.
Annually renewable term (ART)
___________ policies feature a level premium and a death benefit that decreases each year over the duration of the policy term.
Decreasing term
_________ features level premiums and a death benefit that increases each year over the duration of the policy term.
Increasing term
____________ 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.
Return of premium (ROP)
The ___________ provision allows the policyowner the right to renew the coverage at the expiration date without evidence of insurability.
renewable
The ___________ provision provides the policyowner with the right to convert the policy to a permanent insurance policy without evidence of insurability.
convertible
