Ins 3 Flashcards

1
Q

Insureds age at time policy is issued or renewed

A

Attained age

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Policy’s Savings element or living benefit

A

Cash value

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Amount of benefit stated in life ins policy

A

Face amount

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Withheld or postponed until a specified time or event in future

A

Deferred

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Cash value of whole life policy reaches contractual face amount

A

Endow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Premium that doesn’t change throughout the life of a policy

A

Level premium

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Converting net worth to a cash flow

A

Liquidation of estate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Benefits in a life ins policy that the policy owner cannot lose even if policy is surrendered or lapses

A

Nonfortfeiture values

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

In life policies time when the face value is paid out

A

Policy maturity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Financial instruments that may trade for value
Stocks bonds options

A

Securities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Three basic types of term coverage based on how the face amount/death benefit changes during policy term

A

Level
Decreasing
Increasing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Regarding length of coverage all life ins policies fall into two categories:

A

Temporary and permanent protection

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

it only provides coverage for a specific period of time
Aka pure life insurance

A

Term insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Provide greatest amount of coverage for lowest premium compared to any other form of protection
Usuall maximum age not covered or cannot be renewed

A

Term insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Regardless Of type of term ins

A

Premium is level throughout term of policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Only the amount of the death benefit may fluctuate

A

Depending on the type of term insurance

17
Q

Upon selling renewing converting term policy Premium is figured

A

At attained age at time of transaction

18
Q

The most common type of temporary protection purchased

A

Level term insurance

19
Q

Purest form of term insurance

A

Annually renewable term art

20
Q

Death benefit remains level and policy may be guaranteed to be renewable each year without proof of insurability but premium increases annually according to the attained age as probability of death increases

A

Art annually renewable term

21
Q

Feature level premium and features benefit that decreases each year over duration of policy term

A

Decreased term policies

22
Q

Used to insure payment of mortgage or other debts If insured dies prematurely

A

Decreasing term

23
Q

Decreasing term policy is usually

A

Convertible however not renewable since benefit is 0 at end of term

24
Q

An increasing term policy that pays an additional benefit to beneficiary equal to amount of premiums paid

A

Return of premium rop

25
Q

In rop, Return Of premium is paid if death occurs within specified period of time or

A

If the insured outlived the policy term

26
Q

Annually renewable term is

A

Form of level ins that offers the most ins at the lowest cost

27
Q

Which policy component decreases in decreasing term ins

A

Face amount

28
Q

Death benefit remains level but premium increases each year with insureds attained age

A

Annually renewable term

29
Q

Least expensive first year premium found in

A

Annually renewable term

30
Q

Twenty year term policy is

A

level death benefit for twenty years

31
Q

Will pay benefit if insured dies during 20 year premium paying period and nothing if dies after

A

Level term

32
Q

Term policies do not develop

A

Cash values

33
Q

regarding decreasing term policy it is not true that

A

Payable premium steadily declined throughout the duration of contract

34
Q

Premiums remain level with a decreasing term policy and

A

Only the face amount decreases

35
Q

Man purchased 100000 annually renewable term life policy to provide additional protection until kids done college. Discovered that

A

Policy requires a premium increase each renewal

36
Q

Borrowed 10000 on five year installment loan w monthly payments

Which life policy would be best

A

Decreasing Bc face amount Decreases

37
Q

Face amount decreases with

A

Decreasing term

38
Q

Level death benefit
Increase annually with age of insured

A

Annual renewable policies