Term Insurance Policies Flashcards
What are the 3 basic types of term insurance policies
level, decreasing and increasing term policies
Define level term insurance
It is term insurance in which the face amount is fixed
Which term insurance policy has the highest premium?
level term insurance
What are 3 types of level term insurance
annual renewable term (ART), level premium, convertible term
Define Annual Renewable Term
It is a form of level term insurance in which the policy automatically renews without proof of insurability until a stated age annually. the premium increases as the chance of death increases
Define level premium term
both premium and face values are fixed for the life of the policy
Define convertible term
term insurance which has the option of converting to whole life insurance without proof of insurability.
Which type of term insurance is usually associated with debt
decreasing term
Which term insurance has an increasing face value with fixed premium amount?
increasing term
