Types of Life Insurance Policies

Question 1

The most common type of temporary protection purchased where the death benefit does not change throughout the life of the policy and the premium is the same

Answer 1

Level Term

Question 2

the purest form of term insurance where the death benefit remains level but the premium increases annually according to the attained age, as the probability increases

Answer 2

Annually Renewable Term

Question 3

Policies that feature a level premium and a death benefit that decreases each year over the duration of the policy term

Answer 3

Decreasing Term

Question 4

Policy that features a level premium with an increasing death benefit each year over the duration of the policy term

Answer 4

Increasing Term

Question 5

Life policy that provides temporary protection

Answer 5

Term Life

Question 6

general term used to refer to various forms of life insurance policies that build cash value and remain in effect for the entire life of the insured (or age 100) as long as the premium is paid

Answer 6

Permanent Life Insurance

Question 7

what are the key characteristics of Whole Life Policies

Answer 7

Level premium
Death benefit
Cash Value
Living Benefits

Question 8

the basic Whole Life policy that has the lowest annual premium (level) and generates cash value

Answer 8

Straight Life

Question 9

type of whole life policy designed to be completely paid up before age 100 of the insured. Examples are 20-pay life where the policy is completely paid up in 20 yrs or LP-65 paid up by insureds age 65 and generates cash value

Answer 9

Limited Payment

Question 10

A whole life policy that is designed to provide level death benefit to the insured’s age 100 for a one time, lump sum payment. The policy is completely paid up after one premium payment

Answer 10

Single Premium Whole Life

Question 11

a policy developed to provide the insured with the best of both worlds term and permanent coverage

Answer 11

Adjustable Life

Question 12

policy that implies the policyholder has the flexibility to increase the amount of premium paid into the policy and to later decrease it again.

Answer 12

Universal Life

Question 13

Type of policy shared by spouses that pays only on the first death

Answer 13

Joint Life

Question 14

Type of policy shared by 2 or more lives that pays on the last death

Answer 14

Survivorship Life

Question 15

type of policy that has a maturity date before the age 100 and has a higher premium because the funds are intended to be used while the insured is still living

Answer 15

Endowment