Insurance Policies & Riders (Missouri)

Front 1

Endow or Emdowment

Back 1

The maturity date or time at which the cash value equals the face amount. (If the policy matures it is said to endow, and the proceeds are paid to the policy owner.)

Front 2

Face Amount

Back 2

The death benefit payable on a life policy

Front 3

Term Insurance

Back 3

- Certain # of Years
- Lowest Premium
- No Cash Value
- Maximum Issue Age
- Options (Renewability or Convertibility)

Front 4

Types of Term Insurance

Back 4

- Level
- Decreasing
- Increasing
- Step
- Re-entry

Front 5

Level Term

Back 5

The death benefit and the premium remain level during the policy term. (Most group insurance is written as this type)

Front 6

Decreasing Term

Back 6

The death benefit decreases but the premiums usually remain level for the policy term. (Credit Life or Mortgage Redemption)

Front 7

Increasing Term

Back 7

The death benefit increases over the life of the policy. But the premiums remain level.

Front 8

Re-Entry Term

Back 8

Characterized by a lower premium at issue. The insured may renew the policy at a lower premium classification as long as they provide evidence of insurability. If health declines, the premiums will increase on the policy anniversary stipulated as the......

Front 9

Life-Expectancy Term

Back 9

Provides a level term benefit over the life expectancy of the insured using a specific mortality table.

Front 10

Annually Renewable Term

Back 10

The simplest form of term life insurance is for a term of one year. (A death benefit is paid if the insured dies during the one year term. But not if the insured dies one day after the one year term.)

Front 11

False

Back 11

Term insurance has a higher premium than whole life insurance. (True or False)

Front 12

True

Back 12

Meeting the Re-Entry term requirements at the next renewal will result in retention of rating with the same level of benefits issued at the attained age. (True or False)

Front 13

Ordinary (Straight) Life

Back 13

The premium and the face amount remain level to age 100, or death of the insured which ever comes first.

Front 14

Limited Payment

Back 14

Premium payments are for a specified time, such as 20 pay, 30 pay, or to age 65. However the face amount remains level to age 100.

Front 15

Single Premium

Back 15

The entire cost of the policy is paid at the time of purchase. The face amount remains level to age 100. The cash value grows more quickly than Straight or Limited.

Front 16

Indeterminate Payment

Back 16

Specifies two premium rates, a guaranteed maximum, and a lower rate the insured actually pays.

Front 17

False

Back 17

Whole life increases at each anniversary as the premium increases. (True or False)

Front 18

100

Back 18

The cash values of a Limited Pay Life policy will equal the face amount at what age?

Front 19

True

Back 19

A Single Premium Whole Life is paid up when the offer and acceptance are completed. (True or False)

Front 20

Rate of Interest

Back 20

An Interest Sensitive Whole Life policy helps to hedge inflation because of the higher ___________________ paid on the cash value.

Front 21

Adjustable Life

Back 21

Level premium, level death benefit policy that can assume the form of Term or Whole Life with in a single policy while remaining within certain guidelines.

Front 22

Yes

Back 22

May the policy owner change the type of coverage in an Adjustable life policy as well as the amount of premium and coverage within the confines of the policy? (Yes or No)

Front 23

Universal Life

Back 23

A combination of annual term insurance and a cash value saving, the death benefit can be increased, the premiums are flexible describe what life insurance policy?

Front 24

Opt. A - Level
Opt. B - As cash value increases, death benefits increase

Back 24

Universal Life has two death benefit options, what are they? Opt A _________ Opt. B __________

Front 25

Variable Life

Back 25

Has separate accounts, you can invest your money, you can deduct administrative and mortality expenses. This describes which policy?

Front 26

True

Back 26

All variable insurance applications must contain a question of the suitability of variable products for the prospective buyer. (True or False)

Front 27

Variable Universal Life or VUL

Back 27

Has flexible premiums, proceeds go into separate accounts, you can invest your money, policy owner takes all risks of this policy, flexible face amount (higher or lower). A State insurance license and securities license are required to sell this product.

Front 28

Variable Life
Variable Universal Life or VUL

Back 28

The two insurance policies that require a securities license to solicit are.......

Front 29

Specialized Policies

Back 29

Family Income, Family Maintenance, Family Policy, Juvenile, Modified Whole Life are what types of policies?

Front 30

Family Income

Back 30

Is a combination of Whole life and Decreasing term. It's purpose is to proved a specified monthly income from the date of the insureds death. If the insured dies during the term period the benefits are paid for the remainder of the term followed by Whole life benefits.

Front 31

Family Maintenance

Back 31

Is a combination of Whole Life and Level Term. Provides monthly payments for a selected period of years. beginning at the death of the insured, if death occurs during the stated term.

Front 32

Family Policy (Family Protection Plan)

Back 32

Provides life insurance in a single contract for all members of a family. Whole life is written of the head wage earner of the family. Level term is written on the spouse and the child or children. Spousal coverage is generally term to age 65 at which time is expires

Front 33

Juvenile

Back 33

Insurance written of the life of a minor.

Front 34

Modified Whole Life

Back 34

Premiums are typically lower than Whole Life during the early years, then in later year they are higher than typical Whole Life. Generally purchased on a college graduate. And is not a flexible policy.

Front 35

Graded Premium

Back 35

Is similar to Modified Whole Life, except the premium increases each year during the early years and then remains level. In later years the premiums would be greater than a Whole Life policy

Front 36

Joint Life (First to Die)

Back 36

This policy if written to cover the life of two or more lives. The death benefit is paid upon the death of the first to die.

Front 37

Joint Survivorship Life (Last to Die)

Back 37

This policy is written to cover the life of two or more lives. The death benefit is not paid until the last insured dies.

Front 38

True

Back 38

Couples usually purchase Join and Survivors policy because of their estate tax concern. (True or False)

Front 39

Comparing Policy Values

Back 39

Surrender Cost Index and Comparative Interest Rate (CIR) are used in.......

Front 40

Whole Life

Back 40

What type of an individual life insurance policy has a guaranteed cash value?

Front 41

Waiver of Premium

Back 41

If the insured becomes totally disabled, the company waives premiums for the duration of the disability. This rider is known as?

Front 42

Payor Benefits (Waiver of Payors Premiums)

Back 42

Premium is waived if the premium payor becomes disabled or dies, is what rider?

Front 43

Waiver of Premium / Disability Income

Back 43

In the even of disability, premiums are waived and the insured is paid a monthly income is what rider?

Front 44

Waiver of Cost of Insurance

Back 44

A rider that waives the monthly cost of insurance and expenses charges associated with a Universal Life while the insured is totally disabled is.......

Front 45

Juvenile

Back 45

The Waiver of Payor Premium would best fit what policy?

Front 46

Term Rider

Back 46

This rider may be attached to an existing permanent policy or interest sensitive policy to provide an amount of temporary extra insurance protection. (Mortgage Protection)

Front 47

Spouse Rider

Back 47

Is a level or decreasing term rider added to cover the primary insureds present spouse as named in the application, sometimes referred to as The Other Insured Rider

Front 48

Child Rider

Back 48

Is a term rider that covers one child or several children.

Front 49

Family Rider

Back 49

This rider is the combination of both Spouse and Child riders on one policy.

Front 50

Non-Family Rider

Back 50

This rider covers and additional insured other than a family member with an insurable interest

Front 51

Accidental Death (Double Indemnity) Rider

Back 51

In the event of a claim this policy normally pays double the face amount if the death was a result of an accident

Front 52

Accidental Death and Dismemberment Rider

Back 52

Pays a multiple of the face amount upon accidental death, loss of sight, or loss of two limbs.

Front 53

Guaranteed Insurability Rider

Back 53

Allows the insured to purchase additional amounts of insurance at certain age, events, or specified dates without evidence of insurability.

Front 54

Return of Premium Rider

Back 54

If the insured dies within the term, the beneficiary would receive the face amount plus any amount equal to the premiums paid.

Front 55

Return of Cast Value Rider

Back 55

This rider provides the payment of term insurance equal to the cash value amount at the time of death

Front 56

Cost of Living or COL Rider

Back 56

Premiums are adjusted to pay for the adjusted coverage

Front 57

Living Need (Accelerated Death) Rider

Back 57

Allows the early payment of a portion of the face amount before death, should the insured become terminally ill.

Front 58

Viatical Trust Settlement Agreement

Back 58

An agreement between a business firm and a life insurance policy owner insuring the life of an individual with a life threatening or terminal illness, with a life expectancy of two years or less.

Front 59

Chronically Ill

Back 59

A condition which means a person is unable to preform at least two activities of daily living

Front 60

Fraudulent Viatical Settlement Act

Back 60

An act or omission committed by any person who knowingly deprives another of property or intentionally defrauds for pecuniary gains

Front 61

Terminally Ill

Back 61

Having and illness or sickness that can reasonably be expected to result in death in two years or less

Front 62

False

Back 62

The Viatical Trust Agreement is used in retirement planning by Home Service insurers. (True or False)