Term Life Flashcards
What Term policy has cheapest premiums the first year?
Annually renewable term (ART) because the premium changes each year based on attained age of renewal.
Does Annual Renewable Term policy change the coverage amount?
No, it is considered Level Term Insurance but premiums go up each year based on attained age of renewal
What are the main types of Term Insurance?
4 types: D.I.A.L.
1.Decreasing Term
2.Increasing Term
3.Annual Renewable Term(ART)
4.Level Term
What are your options at the end of Term Policies?
Renewable or Convertible
Renewable = Term to Term
Convertible = Term to Perm
Which Term policy is most expensive the first year?
Level Term - coverage remains level the whole term but premiums are the most expensive the first year
True or False: Term insurance offers cash value and dividends
FALSE - term insurance has no cash value or dividend options
Term policy associated with ROP Return of Premium
Increasing Term - you get policy’s face value + amount of premiums paid
Jack & Jill want a policy to cover their bank note (loan), which policy should they use?
Decreasing Term - coverage decreases over time because amount of coverage needed decreases over time as debt decreases
Which policy (other than Level Term) is considered a level term policy?
Annual Renewable Term (ART) because the coverage remains the same while premiums increase
Which end of term policy option is Term to Term?
Renewable
Which end of term policy option is Term to Permanent?
Convertible
True or False: Both end of Term options are Guaranteed Insurability?
TRUE: Regardless of health, you can get another life insurance policy and convert
True or false: Both end of Term Policy options have increasing premium based on attained age
True: Renewed policies’ premiums are based on attained age
