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Terms in this set (52)
Three parts of insurance application
I. General information
2. Medical information
3. Agent's report
There are three different types of term insurance
Life insurance policies can be sold to groups or
individuals and are divided into two main types:
• Term life insurance
• Whole life insurance
The _______ _______ protect the policy owner, the insured and the insurer.
Choices on how to distribute a sum of
Additions to a life insurance policy. They cost extra and are added to a policy to individualize it.
Three different types of whole life insurance
• Straight life
• Limited pay
• Single pay
An insurance producer is also known as "_______ ________"
Insurance producers (agents) assist clients in determining how much _______ _______ their family needs or can __________.
Life insurance; afford
Since term insurance is _______ ________, it is available for _____ _________ of time such as 10, 15, 25, or 30 years.
temporary coverage; set period
An _________ is a way to provide income for the rest of your life.
Two types of annuities
Process of selection, classification and rating of risk is ____________.
Types of Ratings: ________, ____________, ___________ and ____________.
Preferred, Standard, Substandard, and Declined
Gives new policy owners time to review/inspect the policy to make decision keep and maintain or cancel. Usually 10 days.
A period of time to not pay premiums and not lose the coverage without a lapse in coverage. Period is 31 days before policy is considered lapsed.
For customer to receive their CV from a whole life policy they have three options called _________ optoins.
What are the tree nonforteiture Options? ON TEST
1. Cash Value
2. Extended Coverage
3. Paid-up options
What is the insuring component of the Universal Life Insurance. ON TEST
Annual Renewable Term
How can get money out of policy not be a loan?
Surrender part of the CV (or life insurance) Death benefit will be lower because of surrendered amount.
Flexible premium is Universal only. Can pay more, less or skip is always universal
Target (what they want you to pay to keep policy going) or minimal.
Two options for beneficiary payout
Option A: Only getting life insurance
Option B: Insurance and any cash value in the contract. (Bigger payout to beneficiary)
Universal has two ways to earn interest
Contract: Written in contract. Guaranteed interest rate, can go more but cannot go less than in contract.
Current: Opportunity to make more, goes with the interest rates. Can be fluctuate
CV in bucket is too low to cover cost of insurance. ON TEST
Will no longer have insurance, the insurance has expired.
Even if CV is zero, there will still be life insurance.
Premium is being paid at set amount.
Options to renew Term Life Insurance
Even of CV is zero there is still life insurance
The policy has lapsed due to non payment
3 years from insurance lapse to reinstate, pay all back pay of premiums plus instrest and loans , complete proof of insurability
Advantage of Reinstatement for Insurance Policy ONTEST
Go back to the issue age of policy.
Conversion when leaving a group insurance to an individual insurance time period to decide:
31 days "grace period" to renew without proof of insurability. If die within that timeframe will payout benefits
Group Insurance is bought through your employer, who gets the contract? ON TEST
One contract issued to company, the master contract
What does employee get when group life insurance bought through company? ON TEST
Employees received, certificate of insurance
Elements of a Legal Contract ON TEST
1. Consideration - exchange of value
2. Agreement - between client and company
3. Competent Party - must be competent, not mentally impaired
4. Legal Purpose - must have interest and consent
What type of insurance is for manufacturing or labor companies? ON TEST
Labor group insurance policies
Law of large numbers
Helps insurance companies predict their losses with more certainty
- more people insured the more accurate predictions will be
Statement that has to be true or will void the contract
If birthdate or gender is wrong
Will still pay the claim, but will adjust the coverage amount to be paid
If missed a question on app
Once issue the contract, cannot go back to get the answer.
If caught before contract issued, will return to get the answer to the question.
Split Dollar Plan
Employee is covered but paid by both employee and employer. Employee and employer split the
Key person plan
A key person is covered, employer pays the insurance, and employer is the beneficiary
Policy sold by mutual companies paying dividends to the policy holder
Policy holders for mutual insurance companies vote for? ON TEST
Vote for the board of directors
Who owns the stock company
The stock owners
Refunds of overcharged/unused premiums, not taxable nor guaranteed.
When do we renew our life license?
By the last day of your birth month every 2 years
When you sign over ownership of your policy
Collateral Assignment of Policy
Sign over part of your policy
Absolute Assignment Policy
Sign over all your policy and is irrevocable
If you use your own life insurance policy to use as _____ _____ to pay mortgage if you die, the death benefit will be lower to pay for the balance of the loan, the death benefit will increase (loan decrease) as you pay the loan until all paid. ON TEST
Credit Life Insurance
Another name for Decreasing Term
____ means doubt or unclear in meaning
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