Life Insurance Policies

Question 1

What is term insurance?

Answer 1

temporary protection for a specfied amount of time. Provide the greatest amount of coverage for the lowest premium. AKA pure death protection.

Question 2

Does term insurance have a cash value?

Answer 2

no.

Question 3

what are the types of term coverage?

Answer 3

1. level
2. increasing
3. decreasing

Question 4

What is level term insurance?

Answer 4

death benefit does not change throughout the life of the policy.

Question 5

what is annually renewable term (ART)?

Answer 5

purest form of term insurance. Death benefit remains level. Premium increases each year with insured’s age.

Question 6

what is level premium term?

Answer 6

premium and death benefit stay level.

Question 7

What is decreasing term?

Answer 7

level premium. Death benefit decreases each year. Used to pay off debts.

Question 8

What is whole life insurance?

Answer 8

type of permanent life insurance. has cash value side to it. they are given out at age 100

Question 9

What are the 3 forms of whole life insurance?

Answer 9

1. straight whole life
2. limited pay whole life
3. single premium whole life.

Question 10

What is straight life?

Answer 10

aka ordinary life and continous premium whole life. Policy owner pays same premium to insured’s death or age 100 this has the lowest annual premium.

Question 11

what is limited payment.

Answer 11

premiums are done being paid well before age 100. Common examples are 20 pay life coverage is paid for in 20 years.

Question 12

what is single premium whole life?

Answer 12

paid in one giant lump sum.

Question 13

what is modified life?

Answer 13

charges lower premium for the first couple of years and then higher premium for the rest of the insureds life.

Question 14

what is adjustable life?

Answer 14

combines term and permanent coverage. It gives you the option to change between the two. They can increase or decrease the premium or the premium paying period. Increase or decrease the face amount. or change the period of protection.

Question 15

what is universal life?

Answer 15

aka felxible premium adjustable life. Can increase or decrease premium.

Question 16

What are the universal life policy options?

Answer 16

option a

option B

Question 17

what is option A?

Answer 17

level death benefit.

Question 18

what is option B?

Answer 18

increasing death benefit.

Question 19

what is variable life?

Answer 19

level premium returns are based on performance of portfolio stocks.

Question 20

what is joint life?

Answer 20

single policy to insure 2 or more lives. Premium is based on average age. Benefit is paid once the first person dies.

Question 21

what is survivorship life?

Answer 21

insures 2 or more people. Premium is based on join average age. Pays based on last death.

Question 22

What is accumuulate?

Answer 22

build up

Question 23

what is attained age?

Answer 23

the insureds age at the time the policy is renewed or replaced.

Question 24

what is cash value?

Answer 24

a policys svaing element or living benefit.

Question 25

what is deffered?

Answer 25

witheld or postponed until a specfic time or event in the future.

Question 26

what is endow?

Answer 26

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

Question 27

what is face amount?

Answer 27

the amount of benefit stated in the life insurance policy.

Question 28

What is fixed insruance products?

Answer 28

contracts that offer guaranteed minimum or fixed benefits.

Question 29

what is lapse?

Answer 29

policy termination due to non payment of premium.

Question 30

what is non forfeiture values?

Answer 30

benefits in a life insurancce policy that the policy owner ccannot lose even if the policy is surrendered or lapses.

Question 31

what is policy maturity?

Answer 31

in life plicies the time when the face value is paid out

Question 32

what is secruties?

Answer 32

financial insturments that may trade for value