Comparison of Life Insurance Policies Flashcards
J purchases a new auto that he will make payments for 5 years . What type of life insurance policy would be best to pay off the debt if J were to die prematurely?
-5 year Decreasing Term
Term Life: Death Benefit
-Guaranteed for term only
Term Life: Premium
- Fixed
- can increase depending the type of contract
Term Life: Cash Value
-none
Term Life: Risk
-insurer
Term Life: Performance
-general account
Whole Life: Death Benefit
-Guaranteed for life
Whole Life: Premium
- fixed
- remain level throughout the contract
Whole Life: Cash Value
- guaranteed
- as part of the non-forfeitures
Whole Life: Risk
-insurer
Whole Life: Performance
-general account
Endowments: Death Benefit
-guaranteed until maturity
Endowments: Premium
- fixed
- remain level through contract
Endowments: Cash Value
- guaranteed
- non-forfeitures
Endowments: Risk
-insurer
Endowments: Performance
-general account
Universal Life: Death Benefit
- guaranteed and flexible
- can be increased or decreased
Universal Life: Premium
- flexible
- can increase or decrease to suit needs
Universal Life: Cash Value
- not guaranteed
- depends on the interest credited by insurer
Universal Life: Risk
-insurer
Universal Life: Performance
-general account
Variable Life: Death Benefit
-guaranteed minimum
Variable Life: Premium
- fixed
- remain level
Variable Life: Cash Value
- not guaranteed
- depends on investment performance
Variable Life: Risk
-insured
Variable Life: Performance
-separate account
Variable UL: Death Benefit
- not guaranteed
- subject to the value of the investments
Variable UL: Premium
-flexible
Variable UL: Cash Value
- not guaranteed
- depends on investment performance
Variable UL: Risk
-insured
Variable UL: Performance
-separate account
