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Florida 2-15 Insurance License - Chapter 5

Terms in this set (17)

What type of insurance is for a specified term and pays the coverage benefit if the individual dies during that term
Term life insurance
Life insurance typically includes three types of coverage for insurance:
ordinary insurance
industrial insurance
group life insurance
What type of life insurance is individual insurance that includes many different plans such as temporary insurance, permanent insurance, and other interest sensitive cash value plans. Premiums are typically paid on a monthly, quarterly, semi-annually, or annually.
Ordinary life insurance
insurance policies generally have a small face amount with premiums that are collected weekly or monthly directly by an agent known as a debit agent
Industrial life insurance
insurance is written for an employee group, union, or association to provide coverage for many individuals under one policy contract.
Group life insurance
Slide 1 of 2
Which type of Term Insurance would keep pace with inflation and increases in the cost of living.
Increasing Term
policies that have a benefit that gradually decreases over the life of the policy. These policies typically work well for mortgage protection.
Decreasing term
There are two options that an insured may purchase to extend the coverage period
The Option to Renew and the Option to Convert.
What Policy gives the insured the option to renew the term policy without going through medical underwriting
A Guaranteed Renewable Policy
Which policy provides the insured with the option to convert the term policy to a whole life (permanent) policy.
The Option to Convert
The Option to Convert normally has either one of two options:
The Attained Age Method or the Original Age Method.
Which method of Option to Convert the insured converts and the premium charged is for a Whole Life policy at the insured's "attained" age at the date of the conversion
Attained Age Method
Which method of Option to Convert the insured coverts and the premium charged for the Whole Life policy is at the insureds age when the original term policy was taken out.
Original Age Method,
Which type of life insurance provides permanent life insurance from the date the policy is issued up to the insured's death or age 100. Generally, the policy's face amount and premium are set for the life of the policy and remain level throughout.
Whole Life Insurance
Which type of insurance provide a death benefit AND have a savings or accumulation element.
Whole Life insurance
The policy's accumulation is referred to as its
cash value" or "cash surrender value"
The cash value in the policy is determined by several factors:
the face amount of the policy.
duration and amount of premiums paid.
how long the policy has been in force
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