Terms in this set (33)
provides overage for life or up to age 100.
What happened when the insured turns 100?
overcharge at first, then payments decrease.
continuous premium whole life
stretches installment premiums over the insured's whole life. Also known as straight life policies.
limited pay whole life
allows the insured to pay off the entire premium early simply by breaking the installments down into a desired number.
Single premium life policy
one large premium covers the entire term of the insurance contract in place of installments
only provides temporary protection for a specified term of years. The policyholder must die during the term for the policy to pay death benefits.
right to renew the policy on the renewal date without evidence of insurability.
right to convert to a permanent policy without evidence of insurability at attained age.
willing to prove that insured is insurable in order to lower the premium.
step rate policy
annual renewable term policy. Goes up every year (ART) or (YRT).
face amount remains constant over the life of the policy
face amount decreases throughout life. can use it to cover mortgages. low premiums.
the coverage will increase over the years of the coverage. Return of premium.
return of premium
if you never file a claim, a premiums will be paid back.
Which life policy can be used to pay off mortgages?
30 year old with a professional spouse
Which of the following would be the most suited for a Variable Universal Life policy?
A Variable life does not guarantee______.
Variable universal life
Bob is 24 and would like to take advantage of variable interest rates and investment performances and be able to vary his premium payments throughout the year. Which would you recommend?
Loan values and retirement incomes are called______.
Annual renewable term
Which of the following policies would most likely be a step rated policy?
Builds no cash value, pays a death benefit only
Term insurance differs from permanent insurance in that term..
Minimum allowable risk corridor
When considering the adjustable death benefit on a current assumption policy the most important consideration is...
Loans or later as retirement income
The cash value accumulation in a life insurance policy can be used for----
Can vary in amount as well as payment schedule
Premiums for a variable universal life...
Variable life policy death benefit
Varies to reflect the investment results of the underlying separate account, but never falls below a guaranteed amount.
The cash value is greatest at the end of the policy period, the insurance protection is the greatest at the start.
Guaranteed interest plus excess interest
The current rate of interest paid to cash value account of a universal life policy consist of..
The cash value of a variable life is determined by...
When can a universal life policy be surrendered for its cash value?
A type of policy that can be changed from one that does not accumulate cash values
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