Policies

Question 1

Attained age

Answer 1

the insured’s age at the time the policy is renewed or replaced

Question 2

Cash value

Answer 2

a policy’s savings element or living benefit

Question 3

Deferred

Answer 3

withheld or postponed until a specified time or event in the future

Question 4

Endow

Answer 4

to have the cash value of a whole life policy reach the contractual face amount

Question 5

Face amount

Answer 5

the amount of benefit stated in the life insurance policy

Question 6

Fixed life insurance products

Answer 6

contracts that offer guaranteed minimum or fixed benefits

Question 7

Lapse

Answer 7

policy termination due to nonpayment of premium

Question 8

Level premium

Answer 8

the premium that does not change throughout the life of a policy

Question 9

Nonforfeiture values

Answer 9

benefits in a life insurance policy that the policyowner cannot lose even ifthe policy is surrendered or lapses

Question 10

Policy maturity

Answer 10

in life policies, the time when the face value is paid out

Question 11

Securities

Answer 11

financial instruments that may trade for value (for example, stocks, bonds, options)

Question 12

Variable

life insurance products

Answer 12

contracts in which the cash values accumulate based upon a specific portfolio of stocks without guarantees of performance

Question 13

Has no Cash Value, and provides the greatest amount of coverage for the lowest premium

Answer 13

Term Life

Question 14

Temporary protection because it only provides coverage for a specific period of time

Answer 14

Term Life insurance

Question 15

_________ provides what is know as pure death protection

Answer 15

Term Life

Question 16

3 basic types of term coverage

Answer 16

level
increasing
decreasing

Question 17

In all types of term life coverage, the premium is

Answer 17

Level

Question 18

Upon selling, renewing , or converting a term policy, the premium is figured at the ____

Answer 18

Attained Age

Question 19

Level term insurance

Answer 19

death benefit does not change

Question 20

Level Premium term

Answer 20

level death benefit and level premium

Question 21

Term life with a level premium and a decreasing death benefit each year

Answer 21

Decreasing Term

Question 22

renewable provision

Answer 22

allows policyowner the right to renew coverage at the expiration date without evidence of insurability

Question 23

Convertable provision

Answer 23

provides the right to convert the policy to a permanent policy without the evidence of insurability.

Question 24

______________ is a general term used to refer to various forms of lifeinsurance policies that build cash value and remain in effect for the entire life ofthe insured (or until age 100) as long as the premium is paid

Answer 24

Permanent

life insurance

Question 25

The most commontype of permanent insurance is

Answer 25

Whole Life

Question 26

Build cash value (living benefits)

Answer 26

Whole life policies

Question 27

Can you borrow against cash value in a whole life policy

Answer 27

yes

Question 28

``` Key charateristics of ______________ are Level premium Level Death benefit cash value living benefits ```

Answer 28

Whole life insurance

Question 29

___________ does not usually accumulate until the third policy year

Answer 29

cash value

Question 30

The 3 basic forms of whole life insurance are

Answer 30

straight whole life limited-pay single premium

Question 31

__________ premiums for coverage will be completely paid-up well before age 100

Answer 31

limited - pay whole life

Question 32

The policy is completelypaid-up after one premium and generates immediate cash.

Answer 32

Single premium whole life (SPWL)

Question 33

allow the policyowner to pay more or less than the planned premium

Answer 33

Flexible premium

Question 34

provide the policyowner with thebest of both worlds (term and permanent coverage). canassume the form of either term insurance or permanent insurance

Answer 34

Adjustable life

Question 35

With an adjustable life policy the policy owner can

Answer 35

Increase or decrease the premium or the premium-paying period; Increase or decrease the face amount; or Change the period of protection converting from term to whole life or vice versa

Question 36

With an adjustable life policy you will need ______________ to increase death benefit or lower premium

Answer 36

proof of insurability

Question 37

__________________ insurance is also known by the generic name of flexible premium adjustable life . That implies that the policy owner has the flexibility to increase the amount of premium paid into the policy and to later decrease it again

Answer 37

Universal life

Question 38

flexible premium interest-sensitive has a contract interest rate

Answer 38

Universal life

Question 39

Universal life has 2 components

Answer 39

Insurance - always annually renewable term insurance | Cash account

Question 40

provides the policy owner with flexible premiums and an adjustable death benefit the policy owner rather than the insurer decides where the net premiums (cash value) will be invested the cash values are not guaranteed, and the death benefit is not fixed The cash value and/or death benefit may increase or decrease over the life of the policy depending on the investment performance of the underlying sub-account

Answer 40

Variable universal life

Question 41

a single policy that is designed to insure two or more lives can be in the form of term insurance or permanent insurance Premium would be less than for 2 individuals The death benefit is paid upon the first death only

Answer 41

Joint Life

Question 42

pays on thelast death | rather than upon the first death

Answer 42

Survivorship life

Question 43

any life insurance written on the lifeof a minor

Answer 43

Juvenile Life

Question 44

Group life insurance is usually written as___insurance

Answer 44

It is usually written as annually renewable term insurance

Question 45

two distinguishing features of group life insurance are

Answer 45

Evidence of insurability is usually not required (unless an applicant is enrolling forcoverage outside the normal enrollment period) Participants (insureds) under the plan do not receive a policy because they donot own or control the policy

Question 46

each insured participant under the group plan is issued a

Answer 46

certificate ofinsurance

Question 47

The actual policy, or masterpolicy/contract , is issued to

Answer 47

the sponsor of the group, which is often an employer

Question 48

Group life insurance cost are based on

Answer 48

the average age of the group and the ratio of men to women

Question 49

special type of coverage written to insure the life of thedebtor and pay off the balance of a loan in the event of the death of the debtor usually written as decreasing term insurance may be written asan individual policy or as a group plan

Answer 49

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