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37 Cards in this Set

  • Front
  • Back
  • 3rd side (hint)

Entire Contract

The company may not refer to or include any other documents







Insuring Clause

Policy stating if the client dies, the company promises to pay beneficiary the death benefit

3 P's




Consideration Clause

Completed App + Premium


Automatic Premium Loan

Procedure to prevent unintentional lapses, where the insurer will take a loan from the cash value to pay the premium due


Allows a previously terminated policy to resume active coverage with all the benefits of their original plan

Incontestable Clause

Places a limit on when the company can dispute a policy


Transferring a policy to someone else insured with you


Person giving up ownership rights


Person receiving the rights from the policy owner

Per Stirpes

Benefits goes to the beneficiaries relatives

Per Capita

Benefits go to named beneficiaries

Primary Beneficiary

First in line to receive the policy proceeds

Contingent Beneficiary

Second in line to receive the policy proceeds

Tertiary Beneficiary

Third in line to receive the policy proceeds

Non-forfeiture Options

Policy owners can use this to still receive cash value in the policy when they can't pay


Cash Surrender

Extended Term Insurance

Reduced Paid-Up Insurance

Cash Surrender

Cash-in a policy for the existing amount

If Insurance is $20,000, but you built $3,000 of interest. You're paid $23,000 and have to claim the $3,000

Extended Term Insurance

Buying the same amount of term insurance as the original whole life policy

Non-forfeiture Option

Reduced Paid-Up Insurance

When the policy pays for itself

Non-forfeiture Option

Stock Companies

Non-participating group owned by stockholders

Mutual Companies

Participating group owned by policyholders


Cash payments from a company's earnings

Dividend Options

Ways to receive cash payments from companies



Reduce Future Premium

Accumulate at Interest

Paid-Up Additions

One-year Term Insurance

Cash Dividend Option

Receive a check annually

Reduce Future Premium Option

Dividend may be applied to the next premium payment

Accumulate at Interest Option

Funds can be let in a separate account to generate interest

Paid-up Additions Option

Dividends are used to buy more of the same insurance

One-year Term Option

Dividend is used to purchase a 1 year term policy


The one receiving the income

Waiver of Premium Rider

If the insured is totally disabled for 6 months, they don't have to pay during the time they're out of work, and they're paid back the first 6 months of premium

Disability Income Benefit Rider

Same as waiver of premium, but insured is also provided a stipulated monthly income

Payor Provision/Rider

If the policyowner dies, the child (under 14.5 yrs old) won't have to pay premiums until they reach a specified age

Juvenile policy

Accidental Death Benefit Rider

Pays a multiple of the face amount of the policy if death occurs within 90 days of the accident

Accelerated Death Benefit

Provides access to the life insurance benefit while the insured is still alive, but has less than 12 months to live

Life Insurance Policy Loans & Withdrawal Options

Loan can be assessed interest at 7.4% advance (accrue) or 8% in arrears

Uniform Simultaneous Death Act

Primary beneficiary is assumed to have died first if the insured and contingent die simultaneously & there's no evidence as to who died first

Life Income with Period Certain

If the annuitant outlives the "period certain", the beneficiary is paid duration of the period certain

Life Income with Refund Option

Only option that guarantees 100% of the death benefit to the beneficiary