GBA2 - Life Insurance

Question 1

Present value of the family’s share of the deceased breadwinner’s future earnings (estimate annual earnings, deduct taxes, determine # of years between now/retirement, use reasonable discount rate)

Answer 1

Human life value approach

Question 2

Various family needs that must be met should family head die & amount of $ needed to meet those needs analyzed

Answer 2

Needs Approach

Question 3

How many states have regulated stop loss for small ER’s?

Answer 3

30 of 50 states

Question 4

Premiums paid while EE is on disability

Answer 4

Waiver of Premium

Question 5

Life insurance with no cash value. Temporary protection. Renewable without EOI.

Answer 5

Term Life Insurance

Question 6

Generic name for cash value life insurance policy that provides lifetime protection with level premiums

Answer 6

Whole life insurance

Question 7

Level premium policy that accumulates cash values & provides lifetime protection to age 121. Excess premium paid in early years, compound interest helps pay later years. Has both equity (savings) and death benefit.

Answer 7

Ordinary Life Insurance

Question 8

Traditional whole life insurance. Permanent with lifetime protection. Premiums are level but only paid for certain period of time.

Answer 8

Limited payment life insurance

Question 9

Fixed premium policy with death benefit & cash values according to investment experience of separate account. Cash surrender value varies according to investment experience of separate account maintained by insurer.

Answer 9

Variable life insurance

Question 10

Flexible policy that provides protection under a contract that separates/unbundles the protection from saving components. Other than first premium, policyholder determines amount/frequency of premiums. Separation of component parts. Provides lifetime protection.

Answer 10

Universal Life Insurance (flexible premium life insurance)

Question 11

Holistic way to evaluate PCMH (improved HC outcomes, patient satisfaction, lower costs)

Answer 11

Triple Aim

Question 12

Policy owner has variety of investment options. No minimum guaranteed rate of interest. Cash value not guaranteed & premium is flexible.

Answer 12

Variable universal life

Question 13

What is benefit schedule related to for Group Life?

Answer 13

earnings, occupation, flat benefit amount for everyone covered