Reading...
Play button
Play button
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;
38 Cards in this Set
- Front
- Back
- 3rd side (hint)
|
Why is term insurance considered temporary insurance?
|
Because it only provides coverage for the number of years specified in the contract
|
|
|
|
insurance whereby premiums are paid for protection in the event of death or disability, not for cash value accumulation
|
Pure Protection Insurance
|
|
|
|
What are the three basic types of term coverage available?
|
Level
increasing decreasing |
|
|
|
A policy premium that remains the same over the period of time premiums are paid
|
Level premium
|
|
|
|
A type of life insurance that features a level premium and a death benefit that decreases each year over teh duration of the policy
|
Decreasing term policy
|
|
|
|
insurance that is kept in force for a person's entire life and pays a benefit upon the person's death, whenever that may be
|
Whole Life Insurance
|
|
|
|
Define Cash value
|
the amount to which a policyownder is entitled if the policy is surrendered before maturity
|
|
|
|
Guaranteed values in a life insurance policy that cannot be taken from the insured, even if he or she ceases to pay premiums
|
Nonforfeiture Values
|
|
|
|
A basic policy that charges a level annual premium for the lifetime of the insured and provides a level, guaranteed death benefit.
|
Straight Life
|
|
|
|
A variation of whole life insurance that charges a level annual premium and provides a level, guaranteed death benefit to the insured's age 100 and will endow for the face amount if the insured lives to age 100. It is designed so that the premiums for coverage will be completely poid-up well before age 100
|
Limited-Pay Whole Life
|
|
|
|
A life insurance policy designed to provide a level death benefit to the insured's age 100 for a one-time, lump sum payment
|
Single Premium Whole Life
|
|
|
|
Which of the following would be considered a non-medical insurance application?(H)
|
b)an application on which the medical information is completed by the applicant and the agent only
|
a)an application for life insurance
b)an application on which the medical information is completed by the applicant and the agent only c)an application that does not ask any questions about the applicant's medical history d)an agent's report |
|
|
Life insurance which permits changes in the face amount, premium amount, preiod of protection, and the duration of the premium payment period
|
adjustable life
|
|
|
|
A combination of flexible premium and adjustable life insurance
|
Universal Life
|
|
|
|
a choice of ways of receiving policy dividends, nonforfeiture values, death benefits or cash value
|
option
|
|
|
|
a single policy that is designed to insure two or more lives
|
Joint Life
|
|
|
|
any life insurance written on the life of a minor
|
juvenile life
|
|
|
|
When will the insured be able to receive the full face amount from a whole life policy?
|
If the insured lives to age 100
|
|
|
|
Which of the following is NOT included in the types of whole life insurance that is offered? (H)
|
C) Increasing term
|
A)Straight Life
B)Limited Payment C)Increasing term D)Single premium |
|
|
Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die?
|
Joint Life Policy
|
|
|
|
Life insurance provided for members of a group
|
Group life insurance
|
|
|
|
a special type of coverage written to pay off the balance of a loan in the event of the deat of the debtor
|
credit life insurance
|
|
|
|
At age 30, a man wants to start an insurance program, but realizing that his insurance needs will likely change, he wants a policy that can be modified to accommodate those changes as they occur. What type of policy would most likely fit his needs?
|
Adjustable Life policy
|
|
|
|
Which of the following Life Insurance policies would be considered interest sensitive?
|
A)Universal Life
|
A)Universal
B)Adjustable C)Whole D)Increasing term |
|
|
Your client has a life insurance policy that requires that the policyowner only pays premiums for a specified number of years or until death. What kind of policy is it?
|
Limited-pay Life Insurance Policy
|
|
|
|
If an employee wants to enter the group outside of the open enrollment period, to reduce adverse selection, the insurer may...
|
Require evidence of insurability
|
|
|
|
A policyowner borrowed a portion of cash value from his whole life policy. When he died six months later, the loan had not been repaid. How will that affect the death benefit to the beneficiary?
|
The death benefit will be reduced by the amount of any unpaid loans and interest
|
|
|
|
An individual was insured under a group contract. he was just fired from his job, and, subsequently, his coverage was terminated. How long does his insurer have to notify him of his right to convert that group policy into an individual policy?
|
60 days the policy's next expiration date
|
|
|
|
When would a 20-pay whole life policy endow?
|
When the insured reaches age 100
|
|
|
|
A universal life insurance policy has two types of interest rate that are called...
|
Guaranteed and Current
|
|
|
|
Which of the following is true regarding the master policy?(H)
|
C)it is issued to the sponsor of the group
|
A)it is the same as the entire contract
B)it is only available for creditor-debtor groups C)it is issued to the sponsor of the group D)it is issued to individual participants |
|
|
What type of policy is called permanent protection?
|
Whole Life
|
|
|
|
Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?
|
Option B
|
|
|
|
Which type of life insurance policy generates immediate cash value?
|
single premium
|
|
|
|
Which policy component must decrease in decreasing term insurance?
|
Face amount
|
|
|
|
With a Straight Life policy, what happens if the insured lives to age 100?
|
The policy matures and the amount is paid to the insured, no matter what.
|
|
|
|
A Straight Life policy charges...
|
a level annual premium for the life of the insured
|
|
|
|
In group life policies, individual certificates are given to...
|
each insured person
|
|
