Unit 8

Question 1

The risk of dying calculated by a table

Answer 1

Mortality Risk

Question 2

A person, estate, or business entity designated to receive the proceeds of a life insurance of a life insurance policy upon the death of the policy holder.

Answer 2

Beneficiary

Question 3

Process of determining the potential impact of your death on others

Answer 3

Life insurance needs analysis

Question 4

Multiply your income by 5 to 10 to figure out how much you may need in life insurance

Answer 4

Income multiple method

Question 5

Provides protection for a specific period of time. Is not an investment product.

Answer 5

Term life insurance

Question 6

If you die during the contract period, your beneficiary receives how much you paid for the contract

Answer 6

Face Value

Question 7

The right to renew the policy without additional proof of insurability

Answer 7

Guaranteed Renewability

Question 8

Fixed rate for a period of years

Answer 8

Level-premium term insurance

Question 9

Giving you the right to convert to permanent life insurance without additional proof of insurability

Answer 9

Convertible

Question 10

Premium remains same, coverage changes over time

Answer 10

Decreasing-term life insurance

Question 11

Provides and investment component along with its protection component. Doesn’t need to be renewed

Answer 11

Permanent life insurance

Question 12

Extra cash invested in policy which eventually offsets death protection costs at old age

Answer 12

Cash value

Question 13

Provides death protection for a persons entire life

Answer 13

Whole life insurance

Question 14

Premiums are payable over whole life

Answer 14

Ordinary life insurance

Question 15

Paid for a specific time, after which the policy is still in force

Answer 15

Limited payment life insurance

Question 16

One time payment

Answer 16

Single premium life insurance

Question 17

Type of permanent life insurance that attempts to address the shortcomings of whole life insurance. Promise death protection and a savings component. When insurance companies earn greater they expected returns on its investment portfolio, policyholders share some of that benefit

Answer 17

Universal life insurance

Question 18

Both of these products allow policy holders to decide how to invest their cash in a policy

Answer 18

Variable life insurance and variable universal life insurance

Question 19

Policies issued by a mutual company

Answer 19

Participating policies

Question 20

Typically one month. If you don’t pay that don’t matter

Answer 20

Grace period

Question 21

Claude that prevents providers from violating coverage due to misstatement by the insured after an amount of time

Answer 21

Incontestable clause

Question 22

An insurance option that allows the insured to waive premium payments under certain conditions, such as permanent disability

Answer 22

Waiver of premium

Question 23

Allows terminally I’ll policyholder to receive a portion of their life insurance proceeds before their death

Answer 23

Accelerated benefits

Question 24

A life insurance contract provision by which the face value is doubled in the case of an accidental death

Answer 24

Accidental death benefit

Question 25

Term used broadly to describe all supportive medical, personal, and social services

Answer 25

Long term care (LTC)

Question 26

Financial product that pays health-care expenses associated with incapacity

Answer 26

LTC Insurance