Wednesday Class

Question 1

Different Term Life Insurances

Answer 1

• Level Term
• Annual Renewable
• Decreasing Term (mortgage redemption/protection, credit life insurance)

Question 2

Term Insurance

Answer 2

• No Cash value
• only covered for a specific amount of time

Question 3

Level Term

Answer 3

pure protection, lasting for a specific term. coverage and premium stay the same during term

Question 4

Annual Renewable

Answer 4

Policy renews every year without proof of insurability. Premiums increase due to age

Question 5

Decreasing Term

Answer 5

used only for debt protection. Coverage decreases as your debt decreases

Question 6

Whole Life Insurance

Answer 6

• Has cash value
• covered you until death or age 100

Question 7

Different Whole Life Insurances

Answer 7

• Straight Life (ordinary)
• Limited pay whole life
• Single premium

Question 8

Straight Life (ordinary)

Answer 8

level death benefits, level premium.
cash value will equal the face amount at age 100

Question 9

Limited Pay Life Insurance

Answer 9

premium is payed until a certain age or time period
paid up at 65 = finished paying premiums, coverage is still whole life
20yr-pay life: how long you want to pay

Question 10

Limited Pay Whole Life Cash Value

Answer 10

will grow faster than straight life

Question 11

Single Premium

Answer 11

premium paid in a lump sum and coverage continues to age 100
fastest way for cash value to grow

Question 12

Flexible Premium Policies

Answer 12

• things can change in policy, effecting premiums
• has cash value

Question 13

Adjustable Life Insurance (3)

Answer 13

Coverage, Premium and type of olán can change.
Insured can change 2
Insurer can change 1

Question 14

Universal Life Insurance

Answer 14

Uses Annual Renewable Term
- is interest sensitive
- coverage and premium can change
- two death benefit options (A&B)
- can make partial surrenders or withdrawal
- mortality charge deducted each month from cash value for cost of insurance and expenses

Question 15

Death Benefit Option A

Answer 15

only gets paid the greater value between the cash value and the coverage

Question 16

Death Benefit Option B

Answer 16

gets “B” for both the cash value and coverage, costs more

Question 17

Specialized Policies

Answer 17

• Joint Life
• Survivorship Life
• Group Life

Question 18

Joint Life

Answer 18

• First to Die
  -Two or more insured on the same policy
• Policy only pays death benefit when the First insured dies

Question 19

Survivorship Life

Answer 19

• Second to die
• Two or more insured on the same policy
• Policy is only pays the death benefit when the LAST insured dies

Question 20

Group Life

Answer 20

• master contract goes to sponsor (usually employer)
• certificate of insurance goes to member
• usually for employee groups
• underwritten as a group (8 min)
• ratings, previous group claims, and experience determine premium
• individual policy = higher premium due to age

Question 21

Different Group Life Insurances

Answer 21

• Contributory Group Life
• Noncontributory Group Life

Question 22

Contributory Group Life

Answer 22

when the employee is paying premium

Question 23

Noncontributory Group Life

Answer 23

owner pays to premium