Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Design & Pricing > Life Insurance > Flashcards

Life Insurance Flashcards

1
Q

Basic Group Term Life

Types of Plans

A
  • Flat Dollar
  • Multiple of Earnings
  • Salary Bracket
  • Position (Insurance amount based on EE category)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Basic Group Term Life

Eligibility Provisions

A
  • FTE
  • Actively-at-Work
  • Evidence of insurability
  • Minimum participation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Basic Group Term Life

Continuity of Coverage and Conversion Rights

A

Insured’s right to convert group term insurance to individual policy upon termination of employment

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

Basic Group Term Life

Disability Provisions (List and Define)

A
  • Waiver of Premium: coverage continues w/o premium when EE is disabled
  • Total and Permanent Disability: Monthly benefit (Reduces DB)
  • Extended Death Benefit: DB payable if coverage terms and EE is disabled and dies within 1 year
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Basic Group Term Life

Benefit Payment Provisions: Settlement Options

A
  • Lump sum
  • Monthly installment
  • Money Market-like account
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Basic Group Term Life

Federal Income Tax: Employers

A

ER-paid premium = deductible on ER’s income tax

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

Basic Group Term Life

Federal Income Tax: Beneficiary

A

Benefits received are excluded from beneficiary’s gross income

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

Basic Group Term Life

Federal Income Tax: Employee

A
  • US = Imputed Income on amounts above $50k
  • Canada = All ER life insurance payments are taxable
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Basic Group Term Life

Federal Regulations

A
  • ERISA
  • ADEA = protects against age discrimination
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Basic Group Term Life

State Regulations

A
  • No individual selection of face amount
  • Maximum EE contribution
  • Minimum participation
  • NAIC model laws
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Group Supplemental Life

Definition and Types

A
  • Definition: EE-pay-all additional insurance that extends beyond basic group term
  • Type: Flat amount or Multiple of Earnings
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Group Supplemental Life

Eligibility Provisions

A
  • FTE
  • Actively-at-work
  • Evidence of Insurability = more stringer than basic
  • Minimum Participation = lower than basic
  • Suicide Exclusion
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Group Supplemental Life

Continuity of Coverage and Conversion Rights

A

Portability Provisions

  • Allow participants to continue group coverage by paying premium directly to insurer
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Group Supplemental Life

Disability Provisions

A

Waiver of Premium only

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

Group Supplemental Life

Benefit Payment Provisions

A

Same as basic group term

  • Settlement options = lump, monthly, market account
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Group Supplemental Life

Federal Income Tax: Beneficiary

A

Same as basic group term

  • Benefits received are excluded from beneficiary’s gross income
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Group Supplemental Life

Federal Income Tax: Employee

A

No imputed income

18
Q

Group Supplemental Life

Federal Regulations

A

Same as basic group term

  • ERISA
  • ADEA
19
Q

Group Supplemental Life

State Regulations

A
  • No individual selection of face amount
  • Maximum EE contribution
  • Minimum participation = If basic plan meets requirements, then supp plan can be lower
  • NAIC model laws
20
Q

Group AD&D

Benefit Payment Provisions

A

Benefit amount = 100% group life amount

  • 100% of Benefit Payable if EE dies or loses multiple members
  • 50% of Benefit Payable if EE loses single member
21
Q

Group AD&D

Definition and Types

A
  • Definition: companion coverage to group term life
  • Types: Non-occupational and 24-hour
22
Q

Dependent Group Life

Eligibility Provisions

A

Same as health coverage

23
Q

Dependent Group Life

Continuity of Coverage and Conversion Rights

A
  • Coverage only continues while EE’s group term life coverage continues
  • Conversion rights = same as EE’s
24
Q

Dependent Group Life

Benefit Payment Provisions

A
  • Benefit = Lump Sum
  • Beneficiary = EE
25
**_Dependent Group Life_** Federal Income Tax: Employee
* US = Imputed income on benefit amounts over $2000 * Canada = ER-paid amounts are taxable
26
**_Survivor Income Benefits_** Definition
Monthly payments to EE's family upon EE death
27
**_Survivor Income Benefits_** Eligibility
Same as basic group term * FTE * Actively-at-Work * Evidence of insurability * Minimum participation
28
**_Survivor Income Benefits_** Continuity of Coverage and Conversion Rights
Conversion rights apply to PV(monthly survivor benefit)
29
**_Survivor Income Benefits_** Disability Provisions
Waiver of Premium Only
30
**_Survivor Income Benefits_** Benefit Payment Provisions + Amount
Amount = % of EE monthly earnings * Guaranteed or Maximum benefit period * Remarriage provisions * Social Security offset * Last Survivor provisions
31
**_Survivor Income Benefits_** Federal Income Tax: Beneficiary
Monthly Payment = Non-Taxable portion + Taxable interest portion
32
**_Survivor Income Benefits_** Federal Income Tax: Employee
Same as basic group term * US = Imputed Income on amounts above $50k * Canada = All ER life insurance payments are taxable
33
**_Group Permanent Life_** Types (List and Define)
* **Single-Premium Group Paid-Up Life** * Benefit = Level DB * Premium = Single Premium * **Group Ordinary Life** * Benefit = Level DB * Premium = Level * **Group Term and Paid-up Plan** * 2 components = EE-Paid Group Paid-Up + ER-Paid Group Term
34
**_Group Permanent Life_** Continuity of Coverage and Conversion Privilege
* Group Paid-Up = No continuity needed because it is fully paid * Group Ordinary Life = Conversion rights limited to (Face Amount - Cash Value)
35
**_Group Permanent Life_** Disability Provisions
Waiver of Premium Only
36
**_Group Permanent Life_** Federal Income Tax: Employee
US = Imputed income is calculated using conservative interest and mortality assumptions
37
**_Group Universal Life_** Definition
Term Life Insurance + Accumulative Interest Side Fund
38
**_Group Universal Life_** Eligibility Provisions
Similar to group supplemental * FTE * Actively-at-work * Evidence of Insurability = more stringer than basic * Minimum Participation = lower than basic * Suicide Exclusion
39
**_Group Universal Life_** Federal Income Tax: Beneficiary
* Cash Surrender = taxable * Death Benefit = Not taxed
40
**_Group Universal Life_** Federal Income Tax: Employee
Favorable tax laws; Interest accumulates on tax-deferred basis
41
**_Group Variable Universal Life_** Definition
Same as GUL = Term Life Insurance + Accumulative Interest Side Fund * Equity and fixed interest investment options available to invest side fund
42
**_Group Variable Universal Life_** Statutory Considerations
* Considered investment product = subject to SEC regulation * Limits on withdrawals and movement of funds among investment options

Design & Pricing (64 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions