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20 Cards in this Set
- Front
- Back
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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. Common for Mortgage or other debts) |
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Increasing term policy |
Begin with little to no insurance protection, and the face amount grows over time. NOT COMMON Level premiums & a death benefit that increases each year |
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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) lowest annual premium in common whole life. |
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Continuous premium whole life |
Most common type of whole life insurance sold. Stretch the premium payments over the whole life of the insured.(Straight life insurance) |
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Limited-payment whole life |
a whole life policy with one premium payment accumulates immediate cash value. |
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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. |
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Annually Renewable Term |
Purest form of term insurance. Level death benefit and level premium during policy term. |
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Modified life |
Whole life policy that charges lower premium in first few years and then higher level premium for remainder of insurers life. (Typically higher than straight life when reached higher terms.). Sudden increase in either 3 to 5 years |
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Graded Premium Whole Life |
Similar to Modified life in that premiums start out relatively low and then level off in future. 5-10 years. Typically starts 50% lower than premium of straight life. The premiums rise gradually instead of instant jump in Modified. |
