Q 25-48 Flashcards
Convertible Term
Feature in some term policies permits “conversion” to perm whole life without, evidence of insurability - Not automatic in all policies, this must be written into the contract
Renewable Term
feature in some level term policies that permits policy to be renewed at option of insured, without prove of Insurability to its term age. - Policy will state max age
Attained Age / Original Age
Age the insured is now - age insured was when they bought the policy
Uses of Term Insurance
Term ins is most apprpriate when there is a termporary need (pay off mortgage) with little money to pay for ins.
Permenant Insurnace
any type of life policy that builds cash value (ordinary, variable, UL)
Face Value or Cace Amount
Amt of benefit that will be paid at death
Whole Life
Type of ins that has premiums paid to age 100 with coverage that cont. to age 100. At age 100, policy endows and pays face value.
Cash Values
The savings portion of a policy that builds up within a perm policy. It is created by premium overcharge. CV can be accessed by surrender of with a loan.
Limited Payment Life
The type of policy that can be “paid up” before age 100. Prem stop but the ins continues till 100. prem are higher per year, but are paid for fewer years
Single Premium Life Policies
Most extream form of limitied payment life - one prem, keeps policy in force until age 100.
When must cash value be credited?
CV must be credited by permanent policy’s 3rd year
Joint Life
One policy that insurs 2 people. The DB is paid at death of first person, no ins remains on the other
Survivorship Life or Joint and Survivor Life (2nd to die)
One policy that insurs 2 people. The DB is paid at death of second person, used to pay fed estate taxes. Cheaper than 2 individual policies
Juvinile Insurance
CV policy issued to an insured under age 15, owned by parent or guardian
Jumping Juvenile Policy
Policy issued to child where DB is reduced in early years. DB jumps 5 times at 21 and remains level till 100. Prem don’t change
