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76 Cards in this Set
- Front
- Back
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How long is the grace period for Individual Life Insurance? |
30 Days |
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Who does the Common Disaster Clause protect? |
The Contingent Beneficiary |
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What does a Common Disaster Clause do? |
It makes the insured person last to die on the paperwork so that their contingent beneficiary still gets the money from insured person even if the spouse died last and designated the money to go elsewhere |
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Traditional Whole/ Ordinary / Straight Life has what type of premiums? |
Fixed Premiums |
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What coverage has the lowest net cost in the long run? |
Traditional Whole / Ordinary / Straight Life Insurance |
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What type of policies CV grows quicker than Ordinary Whole Life? |
Limited Pay & Single Premium Whole Life Insurance |
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What type of Life Insurance has immediate CV? |
Single Premium Whole Life Insurance |
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When does Limited Pay & Single Premium Whole Life Insurance reach maturity? (Pay Out) |
Age 100 |
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What does Adjustable Whole Life Insurance allow you to adjust? |
Face Amount, Term of Protection, and Premiums. |
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What type of Life Insurance is good for clients with fluctuating incomes? |
Adjustable Whole Life Insurance |
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What is a combination of both Term and Whole Life Insurance? |
Adjustable Whole Life, Universal Whole Life (term is the protection), & Variable/Universal Whole Life. |
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Can Adjustable Whole Life Insurance be increased without proof of insurability? |
No it cannot |
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What are Interest/ Market Sensitive Whole Life Products? |
Universal Whole Life, Variable Whole Life, Variable/Universal Whole Life, Interest Sensitive Whole Life, & Equity-Indexed Life. |
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What was the first interest sensitive product produced in the 1980's? |
Universal Whole Life |
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What has a current interest rate that varies from year to year? |
Universal Whole Life/Intrest Sensitive Whole Life |
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What product allows the insured extreme flexibility regarding premium payments? |
Universal Whole Life Insurance |
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What products require FINRA and a series 6 or 7 to sell? |
Variable Whole Life Insurance, Variable/Universal Whole Life Insurance, and Variable Annuities. |
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What does option B UL pay? |
FA & CV |
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What product was brought out so clients could indirectly invest in the stock market? |
Variable Whole Life |
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What products have CV in separate accounts? |
Variable Whole Life & Variable/Universal Whole Life |
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What product has no guaranteed rate of return nor guaranteed CV? |
Variable Whole Life |
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What is SEC? |
Federal Securities & Exchange Commission |
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FINRA is also known as.... |
NASD |
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When you sale a Variable Whole Life policy you must present a _________________ at time of sale? |
Prospectus- Disclosure Document |
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Excess CV on an Variable Whole Life policy is used to do what when insured passes? |
Buy additional linsurance |
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Variable Whole Life has ___________ premiums? |
Fixed |
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What product allows insured to self direct CV into sub-accounts? |
Variable/Universal Whole Life |
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Variable/Universal Whole Life has ________ premiums. |
Flexible |
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What happens if you choose option B on an Variable/Universal Whole Life Insurance policy? |
You may get paid more FA+CV |
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Whats another name for Interest Sensitive Whole Life Insurance? |
Universal Whole Life |
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What is a combination of term and an interest bearing savings account? |
Interest Sensitive Whole Life |
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____________ is a type of CV policy that guarantees the minimum death benefit and earnings on the cash value in the general account. |
Equity-Indexed Life Insurance |
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What product is usually linked to an index? (Usually S&P 500) |
Equity-Indexed Life Insurance |
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Equity-Indexed Life Insurance has a _________ premium. |
Fixed |
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What type of product has no CV? |
Term Life Insurance |
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What has the highest net cost in the long run? |
Term Life Insurance |
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What has the lowest cost in the short run? |
Term Life Insurance |
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What has the highest cost in the short run? |
Whole Life Insurance |
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Term Life Insurance _____________ every year based on _________ age. |
Goes up, current/attained age |
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Term Insurance often expires at age ____. |
65 |
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What can convert into whole life insurance at current age regardless of health? |
Term insurance |
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What type of policy is used in group policies? |
Term Insurance |
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Level Term Insurance has ______ face amounts and ________ premiums at renewals. |
Level, Increasing (both premiums and face amount are level for a period of time) |
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What product may be purchased for one year at a time and is often sold in 5, 10, 15, or 20 year increments? |
Level Term Insurance |
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Decreasing Term's FA __________ and premiums ___________. |
Goes down, stays the same |
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What product is often used as a mortgage redemption? |
Decreasing Term Insurance |
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__________ term insurance is also sold in a variation as credit life (sold by banks)? |
Decreasing |
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What term insurance is not renewable? |
Decreasing Term |
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Decreasing terms premiums _________ and the cost __________ as FA goes down. |
Stays the same, increases. |
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__________ term insurances fa goes up. |
Increasing term insurance |
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What term insurance is sometimes added to whole life policies at an extra cost? |
Increasing Term Insurance |
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___________ term insurance allows beneficiary to receive the FA plus premiums or CV. |
Increasing |
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A type of term insurance where the insured gets back the premiums paid in at the end of term if they are still alive. |
Return of Premium |
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In a return of premium policy premium is returned ________ as it was paid with _______ dollars. |
Tax-free, after tax |
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If the insured dies during term then the _________ is paid to the beneficiary. |
Face Amount |
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The premium for return of premium policy is usually ______ than for a term policy, but _______ than for a whole life policy. |
More, Less |
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What type of product is designed to pay the insured instead of the beneficiary? |
Annuities |
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What product should you buy if you think you will live a long time? |
Annuity |
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What product should you buy if you think you will not live a long time? |
Life Insurance Policy |
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If you die during the pay-in period of a annuity the beneficiary receives what? |
How ever much you put into your account |
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Fixed annuities go into a ________ account and ___________ guarantee interest rate. |
General, has a minimum |
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Variable Annuities goes into a __________ account and ____________ guarantee interest rate. |
Separate, has no minimum |
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What happens when you take a partial withdrawal for more than you put in from an annuity? |
The IRS will tax it |
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What happens if you take $ from a annuity before age 59 1/2? |
You will be charged a penalization fee of 10% for early withdrawl |
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Is there a penalty if you annuitize under the age of 59 1/2? |
No there is no penalization for early annuitzing |
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Do you have to have a beneficiary during the pay-in period of an annuity? |
No, you pick the pay out options so you may or may not choose to have a beneficiary. |
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What is a deferred annuity? |
When you dont annuitze in the beginning but later in life instead. |
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What is an immediate annuitization? |
When you annuitize one month after the policy start date and automatically begin the pay out period. |
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How long is the grace period for annuities? |
30 days |
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Life Income Annuity Pay Out option has ______ beneficiary. |
No |
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What has the highest monthly payment from annuity pay out options? |
Life Income |
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________ is the riskiest annuity pay out option. |
Life Income |
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Does Life Income w/ Period Certain have a beneficiary? |
Yes, for the specific period certain you choose |
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What is the highest monthly payment for Life Income w/ Period Certain? |
5 Year Certain |
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The _________ you choose to have a beneficiary for, the ___________ your monthly payments will be. |
Longer, Lower |
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The Life income w/ refund will _______________ if you pass before receiving your $. |
Refund the beneficiary |
