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13 Cards in this Set
- Front
- Back
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What are the characteristics of term life insurance?
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It provides temporary, pure death protection, with no cash value.
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2. What is annually renewable term insurance?
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Annually renewable term insurance (ART) is the purest form of term insurance in which the death benefit remains level; the policy may be guaranteed renewable each year without proof of insurability, but the premium increases annually according to the attained age.
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3. What are the characteristics of whole life insurance?
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Permanent protection to the insured’s age 100, with living benefits such as cash value, policy loans, and non-forfeiture options.
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4. How does continuous premium straight life differ from 20- year limited pay life?
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The premiums for straight life will be spread over the insured’s lifetime, thus enabling the insurance company to charge a lower annual premium. When the premium-paying period is condensed to 20 years, a higher annual premium is required.
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5. What are the death benefits options in universal life policies?
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Option A is the level death benefit option, and Option B is the increasing death benefit option.
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6. Which authorities regulate variable life policies?
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Variable life insurance products are dually regulated by the State and Federal Government: The Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and the State Department of Insurance.
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7. How do annuities differ from life insurance policies?
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Annuities liquidate an state (Life insurance creates an state). Annuities pay income to the annuitant while he or she is still living; life insurance pays the death benefit.
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8. Who has all the rights in an annuity contract?
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The owner of the annuity has all the rights such as naming the beneficiary and surrendering the annuity.
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9. What happens to the benefit if the annuitant dies during the accumulation period?
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If the annuitant dies before annuitization (or payout period), his/her beneficiary will receive the amount paid into the plan or the cash value, whichever is greater.
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10. An annuity has 2 district periods. What are day called, and what happens during each?
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The accumulation period, also know as the pay-in period, is the period time over which the annuitant makes payments (premiums) into an annuity. The annuity period, also referred to as the annuitization period, liquidation period, or pay-out period, is the time when money is distributed to the annuitant.
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11. What are the 2 premium payments options in annuities?
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Single premium or periodic premiums.
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12. How does inflation affect the purchasing power o a fixed annuity?
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Inflation can erode the purchasing power of income payments.
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13. How soon can payments begin in a deferred annuity?
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In a deferred annuity, income payments begin sometime after one year from the date of purchase.
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