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7 Cards in this Set
- Front
- Back
Term Life Insurance |
Provides a death benefit within a specified time period ( pure death protection) |
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Level Term |
Level policies provide a level face amount throughout the policy period. Two types annual renewable term and level premium term. |
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Annual Renewable Term |
It has a level face amount and increasing premiums. |
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Level Premium Term |
Also called level premium level term, has a level face amount and level premiums. Premiums tend to be higher than annual renewable term because they are level throughout the policy period. |
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Convertible Term |
Policies that allow term life policy owners to convert their term insurance into permanent policies without showing proof of insurability. Upon conversion, a convertible tem policy will have higher premiums because permanent protection is more expensive than term protection.
* Original Age- is the insured's age upon purchase of the term policy. * Attained Age- is the insured's age upon conversion. |
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Renewable Term |
Policies that allow the policy owner to renew the term policy after the designated term expires without having to prove insurability. |
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Decreasing Term |
Policies that provide a face amount that decreases to zero over the policy period. The face amount equals zero on the day the policy expires. The premiums are level. E.g. mortgage reduction insurance |