life insurance provisions, options, and riders.

Question 1

what is graded whole life

Answer 1

not to be confused with a modified whole life though it shares the same characteristics a graded means instead of jumping one time then remaining level a graded will start with lower premiums and gradually increase (typically over the course of 5 years) .

Question 2

limited pay whole life

Answer 2

you pay higher fixed premiums for a shorter amount of years. with a 20-pay life policy the insured only pays for 20 years.

Question 3

what is a single-premium whole life

Answer 3

is paid with a one time lump sum which offers coverage for the entire life

Question 4

whole life

what is straight whole life?

Answer 4

a basic whole life insurance with level face amount and fixed premiums paid over the insured’s entire life.

(payments made up until death or age 100)

Question 5

whole life

what is modified whole life?

Answer 5

lower premiums in the early years and “jumps” to a higher premium in the later years and remains fixed thereafter.

(premiums increase just once)

Question 6

term life insurance

Answer 6

provides pure and temporary protection and is the simplest form of life insurance coverage and only provides protection if the insured dies within specific time frame.

Question 7

how long does term insurance last

Answer 7

available as a 1-year term, 5-year term and 20-year term.

Question 8

term life insurance policies issued for a specified number of years provide coverage from what two ways?

Answer 8

two ways it may be applied coverage from issue date until the end of the years specified. or term policies issues until a certain age provide coverage from their date of issue until the inured reaches the specified age.

Question 9

are benefits paid to the beneficiary if a term policy expires?

Answer 9

no
the “level” part of the name refers to the DEATH BENEFIT.