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17 Cards in this Set
- Front
- Back
Term life Insurance |
Provides temporary protection for a specified amount of years . Pay a death benefit and does not accumulate cash value. The least expensive form of insurance. |
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Renewable Term Policy |
Issued for a specified term and may be renewed at the end of that term without evidence of insurability . May be limited in the number of renewals or to a specified age beyond which renewals will not be available . |
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Nonrenewable term policy |
issued for a specific term and may not be renewed |
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convertible term policy |
Allows a policy owner to convert or exchange the temporary protection for some form of permanent protection without evidence of insurability. Conversion must be made prior to expiration of term. |
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Reentry term policy |
Gives the insured the opportunity to provide evidence of insurability at the end of the term and qualify for reduced premium rates. |
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Level Term policies |
issued for a fixed face amount , which remains the same during the term of coverage. May be issued for an annual period, for a specified number of years or until a specified age. |
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Decreasing term policy |
Issued for an initial face amount that declines during the term period and reaches zero at policy expiration. |
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Increasing term policy |
Begin with little to no insurance protection, and the face amount grows over time. NOT COMMON |
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Whole life insurance |
designed to provide coverage the whole life. Consist of a combination of a savings element and a decreasing amount of net insurance. |
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Straight Life |
Most common type of whole life insurance sold. Stretch the premium payments over the whole life of the insured.(continuous insurance) |
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Limited-payment whole life |
Policies allow the policy owner to pay for the entire policy in a shorter period of time or to a specific age. |
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Single premium whole life policy |
a whole life policy with one premium payment accumulates immediate cash value. |
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Current assumption whole life |
Offer flexible premium payments that are tied into current interest rate fluctuations. |
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Adjustable life insurance |
A policy that offers the policy owner the option to adjust the policy's face amount, premium, and type of protection and length of protection. |
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Universal life insurance |
pay higher interest rates during inflationary times.( has death protection and cash value, the death protection resembles one-year renewable term insurance ) |
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Variable life |
Death protection and savings /invest element. cash values are backed by equity investments and securities are not guaranteed. Regulated as securities. |
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Credit life insurance |
Designed to insure the lives of debtors for the benefit of a creditor. |