chapter 4 Flashcards
three categories of life insurance policies
ordinary, industrial, group
individual life insurance that includes many types of temporary and permanent insurance protection plans written on individuals.
ordinary life insurance
characterized by comparatively small issue amounts, such as $1,000, with premiums collected on a weekly or monthly basis.
industrial life insurance
combination of industrial life insurance and ordinary life insurance.
monthly debt ordinary life insurance
referred to as economatic life or extraordinary life, is a low premium based participating permanent insurance policy.
enhanced whole life insurance
provides a level amount of protection for a specified period, after which the policy expires.
level term life insurance
provides a death benefit that increases at periodic intervals over the policy’s term.
increasing term life insurane
limited benefit (term) policy that’s designed to cover the life of a debtor and pay the amount due on a loan if the debtor dies before the loan is repaid.
credit life insurance
type of convertible term insurance that’s written on a person who wants protection immediately, but who’s not able to afford permanent protection immediately (premium based on original age)
interim term life insurance
The premium for permanent protection is
based on the age when permanent protection begins (the attained age).
steady increase in premium.
step-up premium
means that the cash value accumulations are equal to the face amount.
mature or endow in whole life insruance
type of whole life insurance policy that’s characterized by an initial premium that’s lower than straight whole life insurance for an introductory period.
modified whole life insurance
offers two death benefit options:
universal life insurance
characterized by cash values that grow at a rapid pace so that the policy matures or endows at a specified date (i.e., before the age of 100).
endowment policy
