Life Insurance Policy Types Flashcards
What is Attained Age?
This is the age that a person or an insured has attained as of a given date.
What is Adjustable Life Insurance?
This is a type of policy that combines permanent, whole life, and temporary term life into a single plan that provides the policy owner with the flexibility to adjust premiums throughout the life of the policy.
Convertible Term Life Insurance
This is temporary life insurance that provides the policy owner with the right to exchange an existing policy for other policies that are offered by the insurance company. individual term to individual permanent or group plan to individual plan
What is an Endowment Contract?
This contract pays a face amount after a fixed time period, at specific age, or upon the death of the insured if it occurs before the end of the period.
What is Extended Life Insurance?
This is a non-forfeiture option that’s available when a policy is surrendered and the same face amount of the policy is continued in force for a specified additional period; however, the coverage has changed from permanent to level term protection. Highest face amount of coverage
Face Amount is what?
Another name for death benefit of a life insurance policy
What is a Family Income Policy
This is a policy that combines whole life policy with a decreasing term ride to provide a death benefit together with monthly income payments to the beneficiary. Payments made from date of death until maturity date of the contract. Thereafter, lump sum is paid.
What is a Family Maintenance policy?
This is a type of policy that combines whole life insurance and a level term rider. It provides for the payment of a monthly income during a stated period of years once the insured dies.
What is a Family Policy?
Covers the entire family. Primary insured - breadwinner, with varying amounts of level term insurance on the remainder.
What is Increasing Term Life Insurance?
This is insurance that provides an increasing face amount (death benefit) over time based on specific amounts or a percentage.
What is Joint Life (First to Die)?
This is a policy that covers the lives of two or more. The policy pays a death benefit (face amount) and ends when the first insured dies.
What is Joint Survivorship (Last to Die)?
This is a policy that covers the lives of two or more. The policy pays a death benefit (face amount) and ends when the last insured dies.
What is Permanent Life Insurance?
This is any plan of life insurance that’s designed to last throughout the life of the insured. Level premium, cash value, and non-forfeiture options characterize this.
What is Term Life Insurance?
This is temporary that is designed to afford coverage for a limited number of years. No cash value and can be described as pure protection.
What is Universal Life Insurance?
This is adjustable life insurance under which premiums and coverage are adjustable. For this policy, company expenses are not explicitly disclosed to the insured, but a financial report is provided to the policy holders annually
What is Variable Life Insurance?
This life insurance whose face value or duration varies depending on the value of underlying securities.
What is Variable Universal Life Insurance?
This form of insurance combines the flexible premium features of universal life with the component of variable life in which excess credited to the cash value of the account depends on investment results of separate accounts. The policy holder selects the accounts into which the premium payments are to be made.
What is Whole Life Insurance?
Provides Coverage of the insured until death. Pays benefit upon death.
What is Decreasing term insurance?
Life insurance normally used to pay off a mortgage balance in the event of death of the insured.
What does the word ‘level’ in Level term describe?
The face amount (death benefit)
A Modified Endowment Contract (MEC) is best described as ___?
A life insurance contract which accumulates cash values higher than the IRS will allow
A single premium cash value policy can be described as
a policy that is paid up after only one payment
Which policy feature makes universal life policy different from whole life policy?
A flexible premium schedule
Which type of life insurance is normally associated with a Payor Benefit rider?
Juvenile insurance
Which of the following are the premium payments for a universal life policy NOT used for?
Separate account investments
The statement which best describes the relationship between the premiums of a whole life policy and the premium payment period is ___
The shorter the payment period, the higher the period.
Failing to meet the seven-pay test results in what?
Pre-death distributions likely to become taxable
A life insurance policy that contains a guaranteed interest rate with the chance to earn a rate that is higher than the guaranteed rate is called ___
Universal Life
A permanent life insurance policy where the policy owner pays premiums for a specified number of years is called a(an) ___
Limited pay policy
What is the automatic continuance of insurance coverage referred to as?
Renewal
A partial surrender (loan) is allowed in which of the following life policies?
Universal life
A securities license is required for a life insurance producer to sell
variable life insurance
