Life Insurance
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30 terms
Terms | Definitions |
|---|---|
 Term | provides the most insurance for the least dollars. Death protection only. Matures only at death...during the term |
| Level Premium Term | premium remains level |
| decreasing term | death benefit decreases with time |
| increasing term | death benefit increases with time |
| level term | Death benifit always remains level |
| Renewable term | term that can be renewed without proof of insurability...but at a much higher premium. |
| Re-entry term | Renewable term which allows the insured to reestablish insurability...to earn a lower premium |
| Convertible Term | Term that can be converted to whole life (at attained age) without proof of insurability...but at a much higher premium |
| Whole Life | Death protection to age 100 with guranteed cash value growth and premiums remain level |
| Family Policy | Whole Life and Convertible term for the entire family |
| family income | covers only the breadwinner with whole life and decreasing tern |
| modified life | the automatically converts to whole life |
| graded premium | whole life that starts out cheap and becomes more expensive |
| interest sensitive whole life | a whole life policy written using current assumptions concerning mortality, interests and expenses. Cash value can grow at rates higher than the guranteed minimum |
| Adjustable life | policyowner can choose two of the three: death benefit, premium or type of insurance (whole life/Term) |
| Variable Life | AKA variable Whole Life. Cash value not guranteed. A minimum Death Benefit is guranteed. Owner can control where cash value is invested |
| Universal life | death protectionis always term. Owners can make policy funtion life term or whole life by pumping more or less cash. Owner can take money from cash value without paying it back |
| Variable Universal | Same as universal plus owner can also control where cash balue is invested. No guarantee cash value |
| Modified Endowment Contract | Occurs when your cash value grows too fast. When it happens you lose all the tax benefits of a life insurance policy. |
| Joint Life | two or more insureds. Pays upon death of the first |
| Survivorship Life | Two or more insureds. Pays upon death of the last |
| Double Jointed Annuity | Provides income for anyone who can reach an armover their head and pull their wallet out of their back pocket. Primariliy for circus people |
| Annuity Certain | Not guranteed for life. You put money in. Company pays out. Definite start, definite stop - like a bridge |
| Variable Annuity | The value of your account is in units, not dollars. Company gurantees a certain number of units for the rest of your life. Value in dollars can go up or down |
| Deffered Annuity | Wait to start collecting income |
| Immediate Annuity | Begin recieving income now |
| Joint and Survivor Life Annuity | Provides retirement income so long as either your or your spouse is alive |
| Refund Life Annuity | Guarantees your an income for life, but if your die before collecting the total face amount of your annuity, the company will refund the remainder to your heirs. Not a death benefit |
| Life Annuity With Period Certain | Gurantees retirement income for the rest of your life. Even if you die, the company will continue paying your income until the end of the period certain (5, 10 years) |
| (straight) Life Annuity | Provides retirement income for the rest of your life |
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