Life Insurance Policies Recap

Question 1

Term Life Insurance has ______ protection, lasts for __________ term with _____ cash value

Answer 1

Term Life Insurance has ___pure__ protection, lasts for ______specific____ term with ___no_ cash value

Question 2

Term Life insurance’s 3 General characteristics are

Answer 2

Pure protection
Lasts for specific term
No cash value

Question 3

Term Life Ins.’s Level Premium Term is

Answer 3

Level death benefit and level premium

Question 4

Term Life Ins.’s annually renewable term

1. Renews _______________
2. Premiums_____________

Answer 4

Term Life Ins.’s annually renewable term

1. Renews ____each year without proof of insurability___________
2. Premiums___increase due to attained age______

Question 5

Term Life Ins’s Decreasing Term

Answer 5

Coverage decreases at predetermined times gradually; best used when the need for protection declines from year to year

Question 6

Term Life Ins’s Increasing Term

Answer 6

Coverage increases each year

Question 7

Whole Life Ins General Characteristics (4)

Answer 7

1. Permanent Protection
2. Guaranteed elements (face amount, premium, and cash value) until death or age 100
3. Level Premium
4. Cash value and other living benefits

Question 8

Whole Life Straight Life (Continuous Premium) 3.

Answer 8

1. Basic policy
2. Level death benefit
3. Insured pays premiums for life or until age 100

Question 9

Whole Life Ins.’s Limited Payment

Answer 9

Premiums are paid until a certain age or time; coverage in effect to age 100

Question 10

Whole Life Ins.’s Single Payment

Answer 10

Premiums paid in one lump sum and coverage continues to age 100

Question 11

Flexible Premium General Characteristics (2)

Answer 11

Types of whole life insurance

Flexible premium

Question 12

Flexible Premium Adjustable Life (3)

Answer 12

1. Policyowner may adjust the premium and premium paying period, the face amount, and the period of protection.
2. Can be converted from term to whole life ans vice versa
3. Cash value only develops if the premiums paid are more than the cost of the policy

Question 13

Flexible Premium Universal Life (4)

Answer 13

1. Has an insurance component in the form of annually renewable term
2. Two death benefit options: Option A - level death benefit, and Option B - increasing death benefit
3. Can make partial surrender/cash withdrawal
4. Flexibility through unbundling (seperating)

Question 14

Variable Life Policy has;

1. ___ premiums, ____ death benefit.
2. ____value and the actual amount of death benefit are __________.
3. Assets in ______ ______.
4. Agents must be dually licensed in insurance and in _______

Answer 14

Variable Life Policy has;

1. _Fixed__ premiums, __minimum__ death benefit.
2. __cash__value and the actual amount of death benefit are ____not guaranteed______.
3. Assets in ___seperate___ _accounts_____.
4. Agents must be dually licensed in insurance and in _____securities__

Question 15

Joint Life (First to die) 3

Answer 15

1. Insures 2 or more
2. Premium based on a joint age of the insured
3. Benefit paid upon the first death

Question 16

Survivorship Life (Second to die) 3.

Answer 16

1. Insures 2 or more people
2. Premium based on a joint age of the insured
3. Benefit paid upon the last death

Question 17

Group Life Ins has a _____ contract that goes to the ____, ussually employer. Not a policy but a ____ goes to the member. Underwritten as a group. If coverage after open enrollment then ______ of ________ is required. Conversion to __________ policy in ___ days - same face amount but higher premium due to attained ___.

Answer 17

Group Life Ins has a ___master__ contract that goes to the __sponsor__, ussually employer. Not a policy but a certificate___ goes to the member. Underwritten as a group. If coverage after open enrollment then __proof____ of __insurability______ is required. Conversion to __individual________ policy in __31 days - same face amount but higher premium due to attained __age_.