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30 terms

Life Insurance

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Term
provides the most insurance for the least dollars. Death protection only. Matures only at death...during the term
Level Premium Term
premium remains level
decreasing term
death benefit decreases with time
increasing term
death benefit increases with time
level term
Death benifit always remains level
Renewable term
term that can be renewed without proof of insurability...but at a much higher premium.
Re-entry term
Renewable term which allows the insured to reestablish insurability...to earn a lower premium
Convertible Term
Term that can be converted to whole life (at attained age) without proof of insurability...but at a much higher premium
Whole Life
Death protection to age 100 with guranteed cash value growth and premiums remain level
Family Policy
Whole Life and Convertible term for the entire family
family income
covers only the breadwinner with whole life and decreasing tern
modified life
the automatically converts to whole life
graded premium
whole life that starts out cheap and becomes more expensive
interest sensitive whole life
a whole life policy written using current assumptions concerning mortality, interests and expenses. Cash value can grow at rates higher than the guranteed minimum
Adjustable life
policyowner can choose two of the three: death benefit, premium or type of insurance (whole life/Term)
Variable Life
AKA variable Whole Life. Cash value not guranteed. A minimum Death Benefit is guranteed. Owner can control where cash value is invested
Universal life
death protectionis always term. Owners can make policy funtion life term or whole life by pumping more or less cash. Owner can take money from cash value without paying it back
Variable Universal
Same as universal plus owner can also control where cash balue is invested. No guarantee cash value
Modified Endowment Contract
Occurs when your cash value grows too fast. When it happens you lose all the tax benefits of a life insurance policy.
Joint Life
two or more insureds. Pays upon death of the first
Survivorship Life
Two or more insureds. Pays upon death of the last
Double Jointed Annuity
Provides income for anyone who can reach an armover their head and pull their wallet out of their back pocket. Primariliy for circus people
Annuity Certain
Not guranteed for life. You put money in. Company pays out. Definite start, definite stop - like a bridge
Variable Annuity
The value of your account is in units, not dollars. Company gurantees a certain number of units for the rest of your life. Value in dollars can go up or down
Deffered Annuity
Wait to start collecting income
Immediate Annuity
Begin recieving income now
Joint and Survivor Life Annuity
Provides retirement income so long as either your or your spouse is alive
Refund Life Annuity
Guarantees your an income for life, but if your die before collecting the total face amount of your annuity, the company will refund the remainder to your heirs. Not a death benefit
Life Annuity With Period Certain
Gurantees retirement income for the rest of your life. Even if you die, the company will continue paying your income until the end of the period certain (5, 10 years)
(straight) Life Annuity
Provides retirement income for the rest of your life