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Terms in this set (32)
Life Insurance: Premiums
Life Insurance: Cash value accumulates
Life Insurance: Death benefit is received by beneficiar)y
Life Insurance: Dividends are received
Annuities: Death benefit'is received by beneficiary based upon the
Cost Recovery Rule
For a life policy classified as a Modified Endowment Contract (MEC), it must fail the
Tax penalty for early withdrawal from MEC, annuity, and qualified plans
Small groups are up to
Group health insurance may be conveetred to individual insurance
Within 31 days of termination
12 month pre-existing condition limitation applies once if insured maintains prior creditable coverage and there is no coverage gap
Beyond 63 Days
Benefits must be requested within how many days of separation
Percentage threshold of health insurance premiums plus nreimbursed medical expenses of an individual's adjusted gross income that is tax deductible on an individual's tax return
Percentage of health insurance premiums that proprietors and/or partners of partnerships may deduct on their-tax
Percentage id health insurance benefits that are received tax free
Insurance is a type of risk mangment
Level Term Insurance
death benefit on level basis. It is the amount indicated in the pol- icy at inception. charges on level policies the end of a specified term period, or may be level for entire policy term.
Decreasing term increasing cash
Continuous Premium Whole Life
is a level policy that requires continuous level premi payments in installments throughout life or to age 100, when the policy's cash value equals its face amount.
Limited Premium Whole Life
is similar to Contin- uous Premium Whole Life in that it provides a level death benefit. However, premiums are only paid for specified period, at which time the policy becomes paid up for life.
neuranceSingle Premium Whole Life (SPWL)
a type of life life policy policy that provides provides a a level level death death benene benefit with payment of a single premium payment (typically $5,000 minimum) at policy inception.
Variable Life (VL)
insurance is a level fixed pre- mium investment based product. is, in essence a combination of decreasing term insurance and an investment fund
Univ ersal Life (UL) is
ance. is, essence, a combination of term insurance and a separate savings account the generic trade name for Adjustable Premium Whole Life insur joined into one policy. planned premium Option A is a level death benefit and functions similar to a traditional whole life As its cash value grows the insurer's net amount at risk decreases. Option B is an increasing death benefit equal to the policy's face amount plu in- creasing cash value. This option will result in lower cash value accumulatthan Option A
being insured balance that the planned deposited into premium not require securities license. the cash value is used to pay the term account at current insurance interest costs with the rates.
Variable Universal Life (VUL)
insurance is combination of Variable Life and Uniy er- al Life insurance . It has many of the same features of Universal evel Death Benefit- Option A and the Increasing Death Benefit-Option B. As with Variable T ic permits insured the option of investing in a stock fund portfolio, bond fund portfolio money market fund portfolio. Under Option A,
quity Index Universal Life
insurance is a Universal Life policy with an équity index (e.g., S&P 500) as its invest ment feature. characteristics
(also known as a First-to Die) is a level premium policy covering two or more individuals with death benefits payable at the first death.
(also known as Second-to-Die Life, Last-to-Die Life and Jo int and Last second person dies. ificantly than Survivor Life) is a level premium policy that covers two individuals and pay s when
Premium (ROP) Term Insurance
is a level premium term policy in which the insurance company refunds to t he insured the premiums paid during the policy's Generally, insurers offer 20 or 30-year ROP term policies.
own, Regular or Your Occupation
own, regular your occupation definition p vides the broadest type of language for the insured. It means for the first 24 months after commencement of a loss, the inability of the insured to perform all of the substantial material duties of his or her regular occupation.
The any occupation definition narrows the policy language, and means inability of the insured to perform all of the substantial and material duties of any cupation for which he or she is reasonably suited by reason of education, training, experience.
is the type of disability that is permanent in nature, and as such, given permanent disability status.
Temporary Disability is
is the type of disability that will reduce an individual's ability to for a temporary time period. Examples of temporary disabilities include a arm and a sprained ankle.
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