Life Insurance Policies - The Different Types Flashcards
life insurance that includes many types of term and whole insurance protection plans written on individuals with premiums paid on a consistent (non-weekly) basis
ordinary life insurance
characterized by comparatively small issue amounts with premiums collected on a weekly or monthly basis by the agent at the policyowner’s home
often marketed as burial or worker’s comp insurance
industrial life insurance
policies written for employer, employee groups, associations, unions, and creditors to provide coverage for a number of individuals under one contract
group life insurance
provides low-cost insurance protection for a specific period and pays a benefit only if the insured dies during that period
term life insurance
the equity amount or “savings” accumulation in a whole life policy
cash value
a form of life insurance that provides a level amount of protection for a specified period, after which the policy expires
level term insurance
allows the policyowner to renew the term policy before its termination date, without having to provide evidence of good health
guaranteed renewable policy
the most basic form of life insurance that provides coverage for one year and allows the policyowner to renew coverage each year without evidence of insurability
yearly renewable term
aka annually renewable term
gives the insured the right to covert or exchange the term policy for a whole life without evidence of insurability
option to convert
life insurance that provides permanent protection for one’s entire life - from the date of issue to the date of the insured’s death
whole life insurance
a ready source of funds that may be borrowed against at a reasonable interest rate
living benefits
whole life policies which have level premiums that are limited to a certain period
limited pay whole life policy
a policy where the policyowner pays a large one-time only premium payment at the beginning of the policy period, and the coverage is paid in full for the life of the policy
single premium whole life policy
a policy characterized by premiums that are lower during the preliminary period following issue, and may increase each year until leveling off again in the future
graded premium policy
a life insurance policy characterized by cash values that grow at a rapid pace so the policy matures at a specified date
endowment policy
a policy that is overfunded
modified endowment contract (MEC)
a policy designed to insure all family members in one policy where coverage is sold in units
family plan policy
a joint life policy which covers two lives but the benefit is paid upon the death of the last surviving insured
joint life last survivor policy
