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31 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Term Insurance |
Temporary insurance |
Renting |
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Level Term Insurance |
For benefits to be paid, insured needs to die within the time period of coverage |
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Annual Renewable Term |
Same insurance, but a higher premium the older you get |
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Decreasing Term |
As debt goes down, face value goes down |
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Return of Premium |
Insured gets back the premiums paid tax free at the end of the term if they're still alive |
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Renewable Term |
Allows a policyholder to renew or extend their policy for additional terms without medical examination |
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Convertible Term |
Policy that can be exchanged for permanent life insurance of equal value |
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Whole Life Insurance Definition |
Policy that provides lifetime protection by paying a lump sum death benefit |
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What happens with Whole Life Insurance |
The face amount remains constant for life while the premiums are paid until age 100 |
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Straight Whole Life Insurance |
The policy matures or endows at age 100 |
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Limited-Pay Whole Life Insurance |
The face amount remains constant while the premiums are paid for a specified term |
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Modified Premium Whole Life |
After 5 years, this premium levels up 1 step, and you're taken care of until age 100 |
Modi-five |
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Graded Premium Whole Life |
Premium that goes up every 5 years |
Steps |
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Adjustable Whole Life |
Combines features of term and whole life coverage, giving holders the option to change the characteristics of their policies |
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Something Adjustable Whole Life does |
Allow holders to manipulate the period of protection, increase or decrease the face amount, raise or lower the premium amount, and change the length of the premium payment period |
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Universal Life Insurance |
Offers the low-cost protection of term life insurance as well as savings (like whole life insurance) which is invested to provide a cash value buildup |
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Options given under Universal Life Insurance |
If your insurance matches your income, they give you two options: 1. Stop paying premiums 2. Keep the cooridor open
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Level Death Benefit |
A life insurance payout that is the same whenever the insured person dies |
Universal Life Policy Option A |
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Increasing Death Benefit |
A life insurance payout that combines a level term policy with the increasing cash value |
Universal Life Policy Option B |
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Variable Whole Life Insurance |
Allow you to participate in various types of investment options while not being taxed on your earnings (until you surrender the policy) |
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Joint Life Insurance Policy |
Policy that covers 2 people |
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Jumping Juvenile |
Pay x amount now. When your child turns 21, they'll have x amount at no extra charge. |
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Key Employee Insurance |
Policy owned by the employer insuring the life of a key-person |
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Buy-Sell Agreement |
Used to fund a business buy-out if the business partner dies |
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Cross-Purchase Agreement |
Each partner would purchase a policy on each of the other partners |
4 partners x 3 Policies each = 12 policies |
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Group Conversion Privilege |
Allows a terminating employee the right to convert to an individual life insurance policy w/o proof of insurability within 31 days of plan termination |
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Unbundled Contract |
Shows where all the money is going |
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Decreasing Level Death Benefit |
Face value always has to be more than cash value or else you're given the cooridor option |
Universal Life Policy Option A |
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Variable Whole Life |
Offers a guaranteed minimum death benefit, but no cash value is guaranteed |
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Joint Life Insurance Policy Benefits |
Face amount is payable after the 1st death |
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Fixed (Equity) Indexed Policy |
Cash value accumulation is linked to an index (S&P 500) |
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