Term 2017 Flashcards
The Estate Preservation Rider is not a Term product rider, and is not available automatically under a term conversion to a survivorship policy.
True or False
True
What level term periods is Term 17 available for?
10, 15 and 20
Which of the following is correct about the Accelerated Benefit rider?
A) Insured can accelerate 100% of the death benefit.
B) Insured can accelerate 50% of the death benefit up to $1 million for any reason.
C) Insured can accelerate 50% of the death benefit up to $1 million in the event of terminal illness.
D) Insured can accelerate 100% of the death benefit up to $500,000 in the event of terminal illness.
C) Insured can accelerate 50% of the death benefit up to $1 million in the event of terminal illness.
What are the issue ages for the Accelerated Benefit Rider?
Available to all ages
What does the Unemployment Protection rider do?
Pays all base premium and rider premium for up to 12 months in the event the insured becomes unemployed.
When are face amount decreases allowed?
In policy year four and later.
The Accelerated Benefit Rider can be added at any time.
True or False
True
Which types of insurance is excluded from Term conversion?
Simplified Life, COLI and BOLI
The Unemployment Protection (UP) rider can be added at any time.
True or False
True
The UP rider can be added post-issue.
When are face amount increases allowed?
Never
To qualify for conversion to a survivorship policy, the new life must be age ____ or younger.
75
A decrease in Term face value can only be requested by the policy owner.
True or False
True
What is the minimum issue age for Survivorship Term?
20
What is the maximum face amount for a policy to have the Unemployment Protection (UP) rider?
$5,000,000
Term is used with families, but business must use other forms of life insurance.
True of False
False
What are the issue ages for the Unemployment Protection (UP) rider?
18 - 60
What are the issue ages for the Unemployment Protection Rider?
18-60
What are the minimum and maximum issue amounts for Term 17?
$100,000 - $65,000,000*
*Depending on age, and subject to underwriting, retention limits and reinsurance considerations.
There is a cost for the Total Disability Waiver rider.
True or False
True
For the Total Disability Waiver rider how long must the total disability of the insured last without interruption?
Six months
What are the issue ages for the Total Disability Waiver rider?
20-55
What is the Total Disability Waiver rider?
In the event of total disability, the rider waives the premium to a maximum of $5,000 per month.
Multiple Term policies can be converted into one single permanent policy.
True or False
False
The total annual premium is the same regardless of the payment mode selected.
True or False
False
Annual, semi-annual, quarterly, and monthly payment modes have varying administrative costs.
In policy year 6 what is the maximum face reduction possible for a policy with a $150,000 face value?
$50,000
The policy face amount cannot be reduced below the $100,000 contract minimum.
The face amount of the permanent policy may be up to the face amount of the term policy it replaces, subject to the minimum and maximum limits on the policy converted to.
True or False
True
When does conversion from a Term policy to a permanent policy require underwriting?
Policy owner chooses to increase the face amount from the amount.
Policy owner adds the Long Term Care (LTC) rider.
There’s a change from Smoker to Non-smoker class.
How can the insured prove that he/she is unemployed in order to receive the premium waiver under the Unemployment Protection rider?
By showing that he/she has been receiving state or federal unemployment benefits for a minimum of four weeks.
What’s the maximum attained age for exercising the UP rider?
65
What riders are available on Term 17?
Accelerated Benefit
Total Disability Waiver
Unemployment Protection
What is Total View with regards to underwriting?
It’s an underwriting approach that can potentially lead to a better risk class by taking a comprehensive view of all factors, resulting in a more precise assessment of an individual’s risk profile relative to his or her age group.
Someone who failed to meet ONE of the traditional risk factors, but looks good on others, could receive a better offer.
What is the maximum annual premium the UP rider will cover?
$10,000
A client receiving funds under the Accelerated Benefit Rider may only use those funds for the cost of medical treatment.
True or False
False
There is no restriction on the use of the funds.
Where is UCheck available?
On JH Illustrator and in the Field Underwriting Guide.
What happens with Term 17 after the end of the level term period?
It becomes annually renewable with increasing premiums to attained renewal age 94.
Face amount increases are available on Term 17.
True or False
False. Face amount increases are never allowed.
The Unemployment Protection Rider is available at any time.
True or False
True
What is UCheck?
UCheck is a service that makes it easy for financial representatives, agents and advisers to estimate potential underwriting decisions in the field. It works best for the best risk classes only.
What information do you put into UCheck to estimate your client’s risk class?
Biometrics, such height, weight, age, blood pressure and cholesterol, if known, as well as family history, drug/alcohol history, driving, hazard sports and aviation.
What is the conversion policy for Term 17?
Conversion to ANY permanent product is allowed in policy years 1-4.
In policy year 5 through the end of the level term period conversion is allowed to a product designated for conversions.
Single life Term policies can be converted to a survivorship policy. But the life not insured on the current term contract must go through underwriting.
True or False
True
Which statement is incorrect about the Conversion option on our Term products?
A) The conversion option allows the policy to convert to any John Hancock permanent life insurance product currently offered in our portfolio (except for COLI/BOLI and Simplified Life) during the first 4 policy years.
B) The available conversion period is to the end of the level term period, or attainment of age 70 if earlier.
C) Clients whose Term insurance premiums are being waived under the Total Disability Waiver may convert to a permanent policy with the Total Disability Waiver on the new policy.
D) In policy year 5 through the end of the level term period the policy owner can convert to a product designated for conversions.
C) Clients whose Term insurance premiums are being waived under the Total Disability Waiver may convert to a permanent policy with the Total Disability Waiver on the new policy.
What’s the waiting period for submitting a claim under the Unemployment Protection rider?
12 months.
The waiting period starts from the effective date of the rider, and again at the end of the premium waiver period if this rider has already been exercised.
What is the minimum face amount available on Term 17?
$100,000
Face amount decreases are available on Term 17 after the first policy year.
True or False
False
Decreases are available after year three.
Although Survivorship Term can provide up to 10 years of protection, the maximum number of LEVEL premium years is what?
Five, with five years annually increasing premium after that.
Survivorship Term offers up to how many years of protection?
10
What’s the maximum issue ages for Survivorship Term?
For both ages it’s 90. But if one (or both) of the insureds is sub-standard, then the maximum age for the younger life is 85.
What is the maximum amount a client can receive from the Accelerated Benefit Rider?
$1,000,000
(50% of a $2,000,000 policy)
How many times can the Unemployment Protection rider be used?
Twice
Benefits received under the Accelerated Benefit Rider may be taxable and policy owners should consult a tax professional.
True or False
True
In policy year five how much of a face reduction is allowed?
50%
Clients whose premiums are being waived under Total Disability Waiver may convert their Term 17 product to a permanent product.
True or False
True
But the Total Disability Waiver may not be added to the permanent policy.
Can a client convert from Term 17 to a permanent product while his/her premiums are currently being waived under the Unemployment Protection rider?
Yes.
But the permanent policy’s premiums will not be waived by the UP rider.
In a conversion the new permanent policy is based on the insured’s age at the time of the conversion (attained age).
True or False
True
Term offers conversions to the end of the level term period, or to the policy anniversary nearest the attainment of age 65 if earlier.
True or False
False
To the end of the level term period, or age 70 if earler.
How many risk classes does Survivorship Term have?
Four
Preferred Nonsmoker
Standard Nonsmoker
Preferred Smoker
Standard Smoker
Why is Term 17 such a competitive product?
Improved premiums, including monthly premiums
Improved 10-year women’s premiums
Conversion through the end of the level term period
Addition of the Unemployment Protection rider
The TDW and Accelerated Benefit riders
Conversion credits are available with Term 17.
True or False
False
Survivorship Term conversion rules depend on whether one or both insureds are still living. What are the rules?
If both are alive, then conversion to any product in the survivorship portfolio.
If only one is alive, then conversion to any single-life product.
How many risk classes does Term 17 have?
Six
Super Preferred Nonsmoker
Preferred Nonsmoker
Standard Plus Nonsmoker
Standard Nonsmoker
Preferred Smoker
Standard Smoker
How much of the benefit period must be remaining for the Accelerated Benefit Rider?
One year
There’s a policy face amount cap for the Total Disability Waiver rider. What is it?
$5,000,000
The Total Disability Waiver rider is available only at issue.
True or False
True
