Types Of Life Policies Flashcards
Are group life individually issued?
Group life is not individually issued.
What types of policies are there and can they be renewed ?
There is LEVEL, DECREASING, and INCREASING. Yes they can, when they additional features could include renewability and convertibility.
What term policies is used to payoff a mortgage balance?
Decreasing term
How long do whole life policies mature ?
Whole life policies mature at death or age 100. Whichever occurs first. Also known as permanent insurance also keep your cash value and endow at age 100.
Does STRAIGHT OR LEVEL whole life policies have level premium ?
Yes, straight or level whole life have level premiums until age 100.
What is limited pay whole life?
Limited pay whole life is a higher level of premium are paid for a specific period of time: 10yrs, 20yrs, 40yrs, or age 65. Still endows at age 100
What is a single premium ?
Single premium whole life requires only a single premium.
What’s the difference between modified whole life and graded premium whole life ?
MODIFIED WHOLE LIFE : has lower premium for the first five years with one premium increase.
GRADED PREMIUM WHOLE LIFE: has lower premium for the first year with one gradual increase every year until level.
Both Endow at age 100
What is joint life policies ?
It covers two or more people. It pays first to die.
What are juvenile policies are for ?
Juvenile are written on the lives of the children
What is universal life, why do they charge interest and do you need a securities license ?
Universal life are flexible premium , choice of two death benefits,permanent insurance ( to the age of 100) and unbundling of premiums.
Also premiums are based on mortality , plus cost of insurance, plus interest.
Does need securities license
What does general account And separate account Carrie?
In the general account insurer Carries the investment risk. With a separate account the insured carries the investment risk.
What is variable life ?
Variable life: no guaranteed of cash value, it has level premium, separate account, guarantee minimum death benefits.
What is variable universal life ?
Variable universal life ; flexible premiums, cash value not guaranteed; separate account; death benefit not guaranteed.
What is term insurance ?
It has no NO CASH VAULE and COVERAGE EXPIRES AT THE THE END OF THE TERM. Term policies mature at the end of the policies, if death happens.
