“special use” Life Ins Policies

Question 1

These are designed to insure all family members under one policy.

Answer 1

Family Plan Policy

Question 2

Family Plan Policies usually include the family head covered by permanent (whole life) ins policy, with the spouse/children included on the same policy as

Answer 2

level term life riders (family term riders)

Question 3

Whole life and decreasing term insurance (begins date of purchase).

Answer 3

Family Income Policies

Question 4

Provides monthly income to a beneficiary if death occurs during a specified period after date of purchase.
Income typically DECREASES over time because the household shrinks.

Answer 4

Family Income policies

Question 5

Whole life and level term (begins date of death).

Answer 5

Family Maintenance Policy:

Question 6

Provides income to a beneficiary for a selected period of time if an insured dies during that period, as well as the entire face amount of the policy at the end of the income- paying period,

Answer 6

Family maintenance plan
“maintains” the family using level term. This means the family will receive a benefit for so many years after the insured’s death.

Question 7

Policy that covers two or more people and pays a death benefit when ONE of the insured dies.

Answer 7

Joint Life policy

Question 8

In Joint Life Insurance Policies, the age of the insureds are “_________” and a single premium is charged.

Answer 8

Averaged

Question 9

This plan also covers two lives, but the benefit is paid upon the death of the last surviving insured.

Answer 9

joint and survivor policy, or a “survivorship life policy”/”second to die” policy

Question 10

Compared to the combined premium for separate policies on two people, the premiums for joint life policies and survivorship life policies are _________.

Answer 10

Lower

Question 11

Life insurance which is written on the lives of a minor, with the adult applicant being the premium payor until the child comes of age and is able to take over the payments.

Answer 11

juvenile life insurance.

Question 12

A _____ ______ is typically attached to juvenile insurance and states that, in the event of death/disability of the adult premium payor, the premiums will be waived until the child reaches a specified age (such as 18, 21, or 25)

Answer 12

Payor provision

Question 13

Payor Provision protects the insured in the event the PAYOR dies or is disabled.
T/F

Answer 13

True

Question 14

life insurance designed to cover the life of a debtor and pay the amount due on a loan if the debtor dies before the loan is repaid.

Answer 14

Credit life insurance

Question 15

Credit Life Insurance:
normally issued in an amount not to exceed the ______ loan balance
- usually paid entirely by the __________.
A __________ term policy is most often used.

Answer 15

outstanding;
Borrower;
decreasing