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10 Cards in this Set
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- Back
- 3rd side (hint)
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Life Insurance issue three basis kinds of coverage
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Ordinary Insurance
Industrial Insurance Group Insurance |
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Ordinary Life Insurance
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Includes many type sof temporraty (term) and permanent (whole life, endowment, universal life, variable universal ife and other interest sensitive cash value plans) Premiums are paid monthly, quarterly, semiannually or annually. Ordinary life insurance is the principal type of life insurance purchased in the United States.
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Industrial Insurance
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Industrial life insurance is characterized by comparatively small issue amounts such ast $1,000, with premiums collected on a weekly basis by the agent at the policy owner's home. Industrial insurance, or debit insurance offers a way for individual who can not affort larger policies to obtain some measure of insurance coverage. Quite ofter it is marketed and purchased as burial insurance.
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Burial Insurance
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Home Service Companies
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Industrial insurance is sold by home service companies. Less than 1%.
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Group Insurance
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Group life insurance is written for employer employee groups, associations, unions and creditors to provide coverage for a number of individuals under one contract. Underwriting is based on the group, not the individual who are insured.
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Term Life Insurance
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is the simplest type of life insurance plan. It provides insurance protection for a specified period or tem and pays a benefit only if the insured dies during that period (term)
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Term life is also called
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Temporary life because it provides protection for a temporary period
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Basis Forms of Term Life
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Level Term
Decreasing Term Increasing Term |
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How does Level Term Insurance work?
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it provides level amount of protection for a specified period after which the policy expires.
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eg. A $100,000 ten year level term policy provides a straight level $100,000 of coverage for a period of ten years
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Under a level term insurance how is a beneficiary paid?
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If an insured under the $100,000 policy dies at any time within those 10 years or if the insured under the $250,000 policy dies prior to age 55 their beneficifies will receive the face amount of the benefits. If the insured lives beyod the ten year period or past age 65, the policies expire and no benefits are payable
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