Tricky Flashcards
Guaranteed Insurability Rider /
Future Increase Option
Life insurance rider that permits the policyowner to purchase additional amounts of whole life coverage at specific points in the future.
Also applies to disability income insurance permitting the insured to purchase additional disability income coverage at future dates.
Index Linked Whole Life
Policy face amount increases with respect to inflation without requiring the insured to undergo a medical exam or provide proof of insurability.
Indeterminate Premium Whole Life
Whole life policies that provide a lower initial premium which can fluctuate up to a maximum premium as stated in the policy.
Graded Premium Whole Life
Coverage has several premium increases that occur annually during each year of the step-rate premium period, which is usually the first five or ten years of the policy.
After this period, premiums level off at the higher rate for the policy.
Single Premium Whole Life Policy
Insurance policy which allows the insured to pay the entire premium in one lump-sum.
Variable Universal Life
Universal life insurance with a separate account.
The variable portion of premiums is invested in the insurer’s separate account.
Variable Life Insurance
Policies that earn a fluctuating rate of interest and do nit guarantee a certain cash value.
Policies have fixed level premiums and s guaranteed minimum death benefit.
Fixed Life Insurance
Policies that earn a constant rate of interest and provide guaranteed minimum benefits.
Adjustable Life
Mix of whole and term insurance. The policyowner can modify the premium, face amount, coverage period, and premium-paying period.
Current Assumption Whole Life/
Interest Sensitive Whole Life
Coverage provides flexible premiums based on a changing interest rate.
Modified Whole Life
Policies which use convertible term and whole life to provide permanent protection that has lower premiums during the early policy years.
Term Life Insurance
Insurance that provides pure death protection since it only pays a death benefit if the insured dies during the policy term. It does not accrue cash value.
Group Term Life
Group life which is issued for one year and may be renewed annually without evidence of insurability at the discretion of the policyowner.
Whole Life/
Permanent Life Insurance
Insurance that provides life insurance protection for the insured’s entire life, or until age 100. It provides living benefits.
Extra Ordinary Life/
Enhanced Ordinary Life/
Economatic Whole Life
Combines a whole life policy with a term rider in which dividends are used to buy paid-up coverage.
Straight Life/
Ordinary Life/
Continuous Premium
The most common type of whole life insurance sold. Coverage has a level face amount and level premiums payable over the entire life of the insured.
Unbundled Life/
Universal Life/
Flexible Premium Adjustable
Life insurance that allows the policyowner to buy term and invest the difference.
