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LIFE INSURANCE POLICIES, REVIEW CHAPTER 4 (LIFE)

Terms in this set (65)

Industrial Life
very small face amounts such as $1,000 - $2,000. Premiums are paid weekly and collected by debit agents. They were designed for burial coverage.
Ordinary Life insurance
life insurance of commercial companies not issued on the weekly premium basis. It is made up of several types of individual life insurance, such as temporary (term), permanent (whole).
Group Life Insurance
members of a group such as place of employment, assoc or union. Coverage provided under one master contract. Underwritten as a whole. No evidence of insurability required.
Term Life Insurance
Life insurance that pays a death benefit if the policyholder dies within a specific time period but has no remaining value at the end of this time. Cheapest type of pure life insurance
Level Term
also called a premium term has a level face amount and level premiums. Life insurance written to cover a need for a specified period of time at the the lowest premium is called a Level Term insurance.
Decreasing Term
Term life insurance that provides an annually decreasing face amount over time with level premiums. These policies are usually used for mortgage protection.
Credit Policies
typically purchased using a decreasing term life insurance policy, with the term matched to the length of the loan period and the decreasing insurance amount matched to the declining loan balance
Increasing term
Term life insurance that provides an increasing face amount over time based on specific amounts or a percentage of the original face amount.
Convertible term
Term insurance that specifically permits "conversion" of the policy into permanent protection without proof of insurability.
Renewable Term
the insured person can renew the policy without taking a physical
Annual Renewable Term
provides a level face amount that renews annually
A term rider
type of life insurance product which covers children under their parent's policy
whole life insurance
life insurance that pays a benefit on the death of the insured and also accumulates a cash value. Provides death benefits for the entire life of the insured.
straight life insurance With Whole Life
premiums are payable for the insured's lifetime
Limited Pay Whole Life
have level premiums that are limited to a certain period(less than life). The period can be of any duration. Ex: 20-pay life, pay premiums for 20 years and then you are fully covered until your 100.
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