Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
7 Cards in this Set
- Front
- Back
|
Term Life Insurance |
Provides a death benefit within a specified time period ( pure death protection) |
|
|
Level Term |
Level policies provide a level face amount throughout the policy period. Two types annual renewable term and level premium term. |
|
|
Annual Renewable Term |
It has a level face amount and increasing premiums. |
|
|
Level Premium Term |
Also called level premium level term, has a level face amount and level premiums. Premiums tend to be higher than annual renewable term because they are level throughout the policy period. |
|
|
Convertible Term |
Policies that allow term life policy owners to convert their term insurance into permanent policies without showing proof of insurability. Upon conversion, a convertible tem policy will have higher premiums because permanent protection is more expensive than term protection.
* Original Age- is the insured's age upon purchase of the term policy. * Attained Age- is the insured's age upon conversion. |
|
|
Renewable Term |
Policies that allow the policy owner to renew the term policy after the designated term expires without having to prove insurability. |
|
|
Decreasing Term |
Policies that provide a face amount that decreases to zero over the policy period. The face amount equals zero on the day the policy expires. The premiums are level. E.g. mortgage reduction insurance |
