Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/56

Click to flip

56 Cards in this Set

  • Front
  • Back
-A type of Life Ins.
-Minimum face $1000
-Includes Whole and Term
ORDINARY INSURANCE
-Protects until death or 100
-Always pays, just when & who
-3types:single, continuous, and limited payment premium
WHOLE LIFE INSURANCE
-Cost of the entire policy is made in one lump sum payment
SINGLE PREMIUM
-Payments stretch throughout the insured's lifetime.
CONTINUOUS PREMIUM
-entire premium is paid within a set number of years. Makes fewer payments than Continuous
LIMITED PAYMENT
-single
-continuous
-limited payment
3 TYPES OF WHOLE LIFE
-Constant Premium
-Constant Face Amount
-Has a Cash Surrender Value
COMMONANLITIES OF WHOLE LIFE
-When the cash value equals the face value
MATURITY
-The refund the insured gets if the policy is surrendered before maturity
-Income tax is owed on equity
CASH SURRENDER VALUE
-Day when the insurance co. owes b/c
1.Insured died
2.Insured turned 100
MATURITY DATE
-The cash value minus premiums paid
EQUITY
-Cheap protection for a set period of time.
-No cash value
TERM LIFE INSURANCE
-Level
-Decreasing
-Increasing
3 TYPES OF TERM LIFE
-Lets the insured extend coverage on a term life policy
-New premium calculated on age
-Limit on extentions
-Doesn't have to prove INSURABILITY!
RENEWABLE FEATURE
-Converts a term to a whole life policy
-Doesn't have to prove INSURABILITY!
CONVERTIBLE FEATURE
-Term life with a constant face amount
LEVEL TERM
-Term life with a face amount that decreases over time.
-At the end, face amount =0
-Good for mortgages
DECREASING TERM
-Face amount starts @ 0 and grows over time.
INCREASING TERM
-FAMILY POLICY
-FAMILY MAINTENANCE
-FAMILY INCOME
3 SPECIALIZED (FAMILY) POLICIES
-JOINT LIFE
-MINIMUM DEPOSIT
-JUVENILE
-PRE-NEED
4 OTHER SPECIALIZED POLICIES
-ADJUSTABLE
-VARIABLE
-UNIVERSAL
-VARIABLE UNIVERSAL
4 SPECIALIZED (FLEXIBLE)POLICIES
-Whole life on the breadwinner and term on the dependents.
-Basically used to help family survive if breadwinner dies or cover medical/funeral costs if dependents die
FAMILY POLICY
-A combination of Whole & Term only on the breadwinner
-BW dies w/in term, gets term and whole payments
-BW dies after term, only gets whole benefits
FAMILY MAINTENANCE POLICY
-Combo of whole and decreasing term
-Written on BW only
-Beneficiary gets payments on what is left of the term, and continues to get paid until term ends
-The whole portion is given in 1.)small amt. to cover funeral costs and 2.)one lump sum when payments from the tem end
FAMILY INCOME POLICY
-Insure 2 or more people
-Pays whent the first partner dies
-A way to have ins. cheaper then buying it individually
JOINT LIFE
-Pays only to the last man/woman standing
-Could include 2 or more people
JOINT & LAST SURVIVOR
-Very high first premium
-Immediate Cash Value
-Insured could borrow from CV, but pays interest
MINIMUM DEPOSIT
-For children under 18
-Parent pays premium
JUVENILE
-Premiums don't have to be paid on a juvenile policy if the parent dies while insured is still under 18
PAYOR BENEFIT RIDER
-The face amount automatically increases when minor reaches a stated age. (18 or 21)
JUMPING JUVENILE
-Face amount can be adjusted after the policy is bought
-Premiums are adjusted accordingly
-Face amts. can be increased or decreased
ADJUSTIBLE POLICIES
-A policy with a face amount that will keep up with inflations
VARIABLE POLICY
-INDEX LINKED
-EQUITY LINKED
2 TYPES OF VARIABLE POLICIES
-Face amount is linked to a Consumer Price Index that keeps up with inflation
*both could increase, as well as decrease the face amount.
INDEX LINKED
-Face amount is linked to the performance of the stock market
*both could increase, as well as decrease the face amount.
EQUITY INDEXED
-Require a seperate account
-Require an agents, as well as a securities license.
-Regulated by state and SEC
EQUITY INDEXED II
-CPI
-index linked
CONSUMER PRICE INDEX
-SEC
-Regulate Variable Life Policies
SECURITIES & EXCHANGE COMMISION
-A combo of 1 year renewable term & tax-deferred investment fund
-"Buy term, and invest the difference"
-Premiums earn interest
-Payment schedule is flexible
-Deferred taxes on savings only, not premiums
-Don't need a license & not regulated by SEC
UNIVERSAL
-Combo of Variable (flexible face)& Universal
-Insured makes stock investment decisions
VARIABLE UNIVERSAL
-Pays only to the last man/woman standing
-Could include 2 or more people
JOINT & LAST SURVIVOR
-Very high first premium
-Immediate Cash Value
-Insured could borrow from CV, but pays interest
MINIMUM DEPOSIT
-For children under 18
-Parent pays premium
JUVENILE
-Premiums don't have to be paid on a juvenile policy if the parent dies while insured is still under 18
PAYOR BENEFIT RIDER
-The face amount automatically increases when minor reaches a stated age. (18 or 21)
JUMPING JUVENILE
-Face amount can be adjusted after the policy is bought
-Premiums are adjusted accordingly
-Face amts. can be increased or decreased
ADJUSTIBLE POLICIES
-A policy with a face amount that will keep up with inflations
VARIABLE POLICY
-INDEX LINKED
-EQUITY LINKED
2 TYPES OF VARIABLE POLICIES
-Face amount is linked to a Consumer Price Index that keeps up with inflation
*both could increase, as well as decrease the face amount.
INDEX LINKED
-Face amount is linked to the performance of the stock market
*both could increase, as well as decrease the face amount.
EQUITY INDEXED
-Require a seperate account
-Require an agents, as well as a securities license.
-Regulated by state and SEC
EQUITY INDEXED II
-CPI
-index linked
CONSUMER PRICE INDEX
-SEC
-Regulate Variable Life Policies
SECURITIES & EXCHANGE COMMISION
-A combo of 1 year renewable term & tax-deferred investment fund
-"Buy term, and invest the difference"
-Premiums earn interest
-Payment schedule is flexible
-Deferred taxes on savings only, not premiums
-Don't need a license & not regulated by SEC
UNIVERSAL
-Combo of Variable (flexible face)& Universal
-Insured makes stock investment decisions
VARIABLE UNIVERSAL
-The only type of life insurance a funeral director can sell.
-Pays certain costs(not all)associated with a funeral
-Regulated by the SC Board of Funeral Services
-PRE NEED