Definitions - Life insurance policy’s (Chapter 3)

Question 1

Accumulate

Answer 1

Build up

Question 2

Attained age

Answer 2

the insured’s age at the time the policy is renewed or replaced

Question 3

Cash value

Answer 3

a policy’s savings element or living benefit

Question 4

Deferred

Answer 4

withheld or postponed until a specified time or event in the future

Question 5

Endow
Face amount — the amount of benefit stated in the life insurance policy
Fixed life insurance products — contracts that offer guaranteed minimum or fixed benefits
Lapse — policy termination due to nonpayment of premium
Level premium — the premium that does not change throughout the life of a policy
Nonforfeiture values — benefits in a life insurance policy that the policyowner cannot lose even if the policy is surrendered or lapses
Policy maturity — in life policies, the time when the face value is paid out
Securities — financial instruments that may trade for value (for example, stocks, bonds, options)
Variable life insurance products — contracts in which the cash values accumulate based upon a specific portfolio of stocks without guarantees of performance

Answer 5

to have the cash value of a whole life policy reach the contractual face amount

Question 6

Face amount

Answer 6

the amount of benefit stated in the life insurance policy

Question 7

Fixed life insurance products —

Answer 7

contracts that offer guaranteed minimum or fixed benefits

Question 8

Lapse

Answer 8

policy termination due to nonpayment of premium

Question 9

Level premium

Answer 9

the premium that does not change throughout the life of a policy

Question 10

Nonforfeiture values

Answer 10

benefits in a life insurance policy that the policyowner cannot lose even if the policy is surrendered or lapses

Question 11

Policy maturity

Answer 11

in life policies, the time when the face value is paid out

Question 12

Securities

Answer 12

financial instruments that may trade for value (for example, stocks, bonds, options)

Question 13

Variable life insurance products

Answer 13

contracts in which the cash values accumulate based upon a specific portfolio of stocks without guarantees of performance