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14 Cards in this Set
- Front
- Back
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What are the characterisitics of term life insurance?
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It provides temporary, pure death protection, with no cash value.
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What is annually renewable term insurance?
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Annually renewable term (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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What are the characterisitics of whole life insurance?
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Permanent protection to the insureed's age 100, with living benefits such as cash value, policy loans, and noforfeiture options.
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How does continuous premium straight life differ from 20-year limited pay life?
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he 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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Which features of an adjustable life policy can be changed by the policyowner?
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The premium or the premium-paying period, the face amount, and the period of protection.
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What are the death benefit options in universal life policies?
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Option A is the level death benefit option, and Option B is the increading death benefit option.
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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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What is the premium based on in joint life policies?
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The premium is based on a joint average age that is between the ages of the insureds.
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How do annuities differ from life insurance policies?
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Annuities liquidate an estate; life insurance creates an estate. Annuities pay income to the annuitant while he or she is still living; life insurance pays the death benefit.
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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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An annuity has 2 distinct periods. What are they called, and what happens during each?
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The accumulation period, also known as the pay-in period, is the period of 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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What are the 2 premium payment options in annuities?
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Single premium and periodic premiums.
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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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How does inflation affect the purchasing power of a fixed annuity?
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Inflation can erod the purchasing power of income payments.
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