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Types of Life Policies Flashcards

1
Q

Attained Age

A

The insured’s age at the time the policy is issued or renewed

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2
Q

Cash Value

A

a policy’s savings element or living benefit

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3
Q

Face Amount

A

the amount of benefit stated in the life insurance policy

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4
Q

deferred

A

withheld or postponed until a specified time or event in the future

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5
Q

Endow

A

the cash value of a whole life policy has reached the contractual face amount

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6
Q

Level Premium

A

the premium that does not change throughout the life of a policy

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7
Q

Liquidation of an estate

A

Converting a person’s net worth into a cash flow

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8
Q

Non-forfeiture values

A

Benefits in a life insurance policy that the policy owner cannot lose, even if the policy is surrendered or lapses

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9
Q

Policy maturity

A

In life policies, the time when the face value is paid out

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10
Q

securities

A

Financial instruments that may trade for value

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11
Q

When would a 20 pay whole life policy end out?

A

Where the insured reaches age 100

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12
Q

what type of annuity is suitable for someone who wants to select the benefit option that will pay the largest amount only for as long as the annuitant lives

A

Straight life

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13
Q

An individual has a contract that will provide him with a certain amount of income for the rest of his life. However, this is not a life insurance policy. What type of contract does this person have?

A

Annuity

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14
Q

What does the term level refer to in level term insurance?

A

Face amount

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15
Q

who bears the investment risk in a fixed annuity

A

The insurer

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16
Q

A policy states that it will pay a specified base amount if the insured dies during the 20 year premium paying period and nothing if death occurs after the 20 year period. What type of policy is this?

A

20 year level term

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17
Q

what type of life insurance policies can the policy owner skip premium payments without the policy lapsing

A

Universal life

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18
Q

Mortality tables are used by insurance companies to predict what

A

Life expectancy, and the death rates for specific groups of individuals

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19
Q

What are the death benefit options in universal life policies

A

Option a level, death benefit, and option B increasing death benefit

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20
Q

What is the main reason for purchasing an annuity?

A

To provide income that the annuitant cannot outlive

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21
Q

The death protection components of a universal life policy is expressed as what type of coverage

A

Annually renewable term

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22
Q

what type of whole life insurance policies only requires a payment of premium at its inception and in addition to providing insurance protection for the life of the insured in Dallas at the insured age of 100

A

Single premium whole life

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23
Q

and annually, renewable term policies what does the annual premium based upon?

A

Attained age

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24
Q

what’s an annuity settlement option provide provides income payments to the annuitant for the duration of their life and also guaranteed payment for a specified number of years

A

Life income with period certain

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25
Under a 20 pay whole life policy in order for the policy to pay the death benefit to a beneficiary the premiums must be paid for what time period
20 years or until the insured death which ever occurs first
26
Can a business or a corporation be an annuitant?
No, an annuitant must always be a natural person
27
What type of annuity can be purchased with a single premium?
Immediate annuity
28
In variable universal life insurance to what policy component does the term variable refer?
Cash value, and death benefit
29
How soon can income payments begin in an immediate annuity?
No later than one year from the time of annuity purchase
30
Regarding annuity payments, what is the difference between the annuitant and the beneficiary of an annuity?
The annuitant receives payments from the annuity during the annualization. The beneficiary receives benefits after the annuitant death
31
what type of whole life insurance policy generates immediate cash value?
Single premium whole life
32
What type of licenses are required to sell variable annuities?
A life insurance license and a securities license
33
what type of life insurance is best suited to cover a mortgage
Decreasing term
34
How is the premium determined in a joint insurance policy?
The premium is based on the average age of the insureds
35
In flexible, premium payment annuities the term flexible refers to what
Amount of premium
36
Who is entitled to the cash values in a life insurance policies?
The policy owner
37
what elements of an adjustable life policy can be changed by the policy owners
The amount and payment period of the premium, the face amount and the period for protection
38
What type of life insurance policy offers pure death protection?
Term
39
In an annuity, the accumulated money is converted into a stream of income during which phase
annuitization period
40
an individual just borrowed $10,000 on a five year note from his bank. The note is due in installments. What type of life insurance policy would be best suited to this situation
Decreasing term
41
What are the two phases of an annuity?
Accumulation and annuitization
42
What universal life option has a gradually increasing cash value and a level death benefit
Option a
43
What is the purpose of establishing the target premium for a universal life policy?
To prevent the policy from lapsing
44
How long will a life annuity with a 15 year period certain pay
For the life of the annuitant, unless they die within the first 15 years of the annuitization. Then the payments will last for 15 years.
45
What type of life insurance offers an applicant a cash value element?
Permanent insurance usually whole life
46
Whole life policies provide protect protection until the insured reaches what age
Age 100
47
An annuity purchased with multiple payments that begin income payments after one year from the moments of purchase is known as what type of annuity
Flexible, premium deferred annuity
48
If an annuity provides a certain amount of income or two or more persons with the income ceasing upon the first death, what type of annuity is that?
Joint life annuity
49
Who is life expectancy is taken into consideration in an annuity contract
Annuitant
50
what happens to the cash value when a whole life insurance policy matures
Cash value is paid to the policy owner
51
What is the difference between a single premium and a flexible premium payment options and a deferred annuity
The number of payments that purchased the annuity
52
What are the two classifications of annuities according to the time when an annuity payments begin
Immediate and deferred
53
What type of life insurance policy is life paid up at age 65
Limited pay whole life
54
if the annual attempt dies during the accumulation. Who will receive the annuity benefits?
beneficiary
55
When does an adjustable life policy accumulate cash value?
When the premiums paid are more than the cost of the policy
56
For life insurance policies, mature, when the insured reaches the age of 100 if the owner of a whole life policy dies at age 80, and there are no outstanding loads on the policy portion of the death benefit will be paid to the beneficiary
The full death benefit
57
Under auction be in a universal life policy what happens to the death benefit?
Under option B the death benefits increases each year by the amount of cash value increases
58
what type of premium is charged on a straight life policy
A level premium for the life of the insured
59
What type of insurance policy provide provides permanent protection?
Whole life
60
If there is no named beneficiary for the annuity benefits to which entity will the benefits be paid
Annuitant estate
61
A whole life policy that requires that the policy owner only pays premiums for a specified number of years is known as what kind of policy
Limited pay whole life
62
What happens to the premium in an annually, renewable term life policy
The premium increases with each renewal
63
Why are policy loans not available on term insurance?
There is no cash value to borrow against
64
What policy component must decrease and decreasing term insurance
Face amount
65
Who is receive income payments from an annuity?
Annuitant
66
what type of annuity requires an agent to have a securities license?
Variable annuity
67
With a single premium deferred annuity when will the annuity payments become available?
No sooner than one year after the annuity purchase
68
what type of insurance would perform the function of cash accumulation?
Whole life
69
What type of annuity credits it's interest based on an index such as the S&P 500
Equity index annuity
70
In a joint life policy when is the death benefit paid?
Upon the first death
71
If the annuitant dies before the annuitization period starts, what will the beneficiary receive?
Either the amount paid into the annuity or the cash value, whichever is greater
72
during partial withdrawal from a universal life policy what portion if any will be taxed
Interest earned on the withdrawn, cash value

Montana Life Insurance (3 decks)

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