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30 Cards in this Set
- Front
- Back
term characteristics(5)
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1. temp protection
2. expire at age or term 3. no cash value 4. premium increases with age or renewal 5. max age for isssue/ renewal is 70 |
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term - types(5)
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1. level - benefit and premium level
2. decreasing - benefit decreases and premiums level 3. increasing - benefit increases and premium level 4. re-entry term - low premuim at issue, renew policy at low level ONLY if can show same insurability level 5. life expectancy term - uses mortality table to calculate life of insured. |
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special features of term (2)
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1.renewable. premium at ATTAINED age
2. covertiable. premium at ATTAINED OR ISSUE age. |
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whole life characteristics(first 5)
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1. perm protection matures at age 100.
2. builds cash, loan, nonforefeiture value 3. pure protection = face value - cash value 4. borrow from cash value at fixed or variable interest 5. if lapses, nonforfeiture values available |
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wholife life characteristics(2nd 5)
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1. level premiums. more than cost of policy in early years and less in later
2. shorter the premium paying period, the higher the period 3. settlement options at death or maturity 4. cash value and face value mature at 100 5. CANNOT convert to term but can add rider |
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types of whole (6)
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1. ordinary(straight)life-premium/face level to100
2. limited payment-premium for specified time, face level till 100 though 3. single premium- face level till 100 cash value fast 4. indeterminate premium-2 premiums guranteed max and lower actual pays 5. current assumtion(sensivite)whole - life- flex premiums face level w/ higher intest rate 6. enhanced(economatic)life-dividends to purachase more(70/30 w/t) |
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endowment policies chacteristics
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1. protection until endows matures before 100
2. may borrow form cash value 3. level premiums until death or endow 4. more empahsis in saving NOT needs protection 5. VERY expensive |
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4 types flex policies
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1. adjustable
2. universal 3. variable 3. variable universal |
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adjustable life(3)
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1. level premium and face either term or whole. can change type, coverage or premium amount.
2. increase requires insurability 3. increase in premium = lenghting protect period of term and shortning whole |
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universal life
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1. select face amount within min and max, frequency or premium also chosen.
2. face may/maynot fixed. no guarnated rate, borrow up to cash vlaue. 3. death A-level death more cash or B-increase death by paying face and cash |
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variable
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1. fixed premium. cash and death changed reflecting investments (mutual funds)
2. premiums less expense and mortality, paid into sep acct. 3. guarnated face ( orginal) and max loan value of 90% at 8%i |
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variable universal life
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premium and face are flexible, cash account in sep acct. can trasnfer funds b/t account with NO fees. borrow up to cash value
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family INCOME policy or rider
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1.whole and decreaing term
2. mothly income from insured death until specified future date 3. whole life death benefit paid at end of month payments |
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family MAINTENANCE
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1. whole and level term
2. month income for select number of years 3. whole life paid at time of death |
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family POLICY
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1. protection for ALL members of family
2. written on wage earner 3. level term on spuose and child(s) 4. kids can convert WITHOUT insurability |
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juvenile policy
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written on minor. automatically increases face amount at 21 to 25. level premium
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modified whole life
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premiums are cheap in early year and more in later years. attractive to limited finance families
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graded premium
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premiums increase each year and then remain level later
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joint life
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FIRST TO DIE. benefit paid at 1st death. average age of both insured. whole ife basis mature at 100
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joint survivorship
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LAST TO DIE. not until 2nd. whole life/100
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2 methods to compare policy values
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1. surrender cost index - must have fixed i rate and systmatic calc of cash value
2. comparitive i rate. can compare cash value vs. term plan that invests the difference. future money CANNOT be a factor. |
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5 types with cash value
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1. all wholes
2. endowment 3. family and some juvenile 4. graded premium 5. joint life(both) |
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disability riders(4)
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1. waiver of premium- if totally disablied waives premium. max 6 month elimination
2. payor benefit- premium waived if premium payor dies(juvenile policies) 3. waiver of premium/disability income-premium waived and paid monthly $10 per $1000 face 4. waiver of cost on insurance - waived monthly cost with universal life |
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term riders(4)
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spouse rider-level or decreasing
child rider - till bday 25. convetible without insurance family rider-spouse and child non family rider - someone of insurable interst |
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death benefit riders(first 4)
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1. accidental death- double the face of accident
2. accident and dismemberment - multiple face amount if accidnent death of 2 plus limbs or sight. 3. guranteed insurability - buy more and attained age with insurability. at ATTAINED age. 4. return of premium-increasing term equal to premium paid. recived face plus premiums paid. also can add to whole |
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death benefit riders(last 3)
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1.return of cash value- term insurance equal to cash value
2. cost of living-increased term to COL 3. living need-advance on portion of face before death. |
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viatical loan borrower
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owner of life insurance
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viatical loan broker
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works for fee on behalf of borrower to negotiate deal
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viatical loan rep
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authorized agent
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viatical seperate
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same but on behalf of viator
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