Life Insurance Policies (3)
Limited-pay Whole Life
Type of life insurance policy that is Life-Paid-up at Age 65
Annually renewable term
The death protection component of a universal life policy is expressed as __ coverage
Premium payment mode
The major difference between the most common types of whole life policies: Straight life, limited payment and single premium?
Face amount
The policy component that must decrease in decreasing term insurance
Interest earned on the withdrawn cash value
The portion taxed in an universal life policy partial withdrawal
Face amount
"Level" in level term insurance refers to the __
20 year level term
A policy which states that it will pay a specified face amount if the insured dies during the 20 year premium-paying period and nothing if the death occurs after the 20 year period
Level premium
Premium charged on a straight life policy
Universal life
The type of life insurance that provides more flexibility to the policyowner
Evidence of insurability
When the amount of insurance is increased in an adjustable life policy, the insurer will require __ from the insured
The insured reaches age 100
A 20-pay whole life policy is endowed when __
Evidence of insurability
If an employee wants to join group life insurance coverage outside of the open enrollment period, the employee must provide __
There is no cash value to borrow against
Policy loans are not available on term insurance because
Evidence of insurability is not required
The main advantage of converting from group life insurance to individual coverage
The death benefit increases each year by the amount of the cash value increases
Under Option B in a universal life policy, __ occurs to the death benefit
A minor
A __ is insured under a juvenile life policy
The amount of the loan will be subtracted from the death benefit
A policy owner borrowed a portion of cash value from his whole life policy. If the loan is not repaid, the affect on the death benefit of the beneficiary will be __
Limited-pay whole life
A whole life policy that requires that the policy owner only pays premiums for a specified number of years is __
The premiums paid are more than the cost of the policy
Adjustable life policy accumulates cash value when ___
Decreasing term
An individual just borrowed $10,000 on a 5 year note from his bank. The note is due in installments. ___ would be the best type of life insurance policy suited for this situation.
Premium remains level
In term policies, the __ occurs to the premium throughout the term of the policy
Cash value & death benefit
In variable universal life insurance, the word 'variable' refers to what policy component
100
The age at which the insured of a whole life insurance policy must attain in order to receive the policy's face amount
Whole life
Type of life insurance policy that provides permanent protection
Single premium whole life
Type of whole life insurance policy that generates immediate cash value
age 100
Whole life policies provide protection until the insured reaches __
Option A-level death benefit & Option B-Increasing death benefit
___ are the death benefit options in universal life policies
The policy owner
__is entitled to the cash values in a life insurance policy
Upon the first death
In a joint life policy, the death benefit is paid __.
The insured's attained age
In annually renewable term policies, the annual premium is based on __
Deferred
The cash value of a universal life policy accumulates taxes __
To prevent the policy from lapsing
The purpose of establishing the target premium for a universal life policy is __
Guaranteed and Current
The two types of interest rates in Universal Life policies
Convertible term
The type of life insurance policy that can be changed from a policy with no cash value to one that generates cash value
Option A
The universal life option that has a gradually increasing cash value and a level death benefit
Decreasing term
Type of life insurance best suited to cover a mortgage
Term
Type of life insurance policy offers pure death protection
Whole life
If an insured terminates membership in a group life insurance, the insured can convert coverage to this policy
Cash value is paid to the policy owner
__ occurs to the cash value when a whole life insurance policy matures
Full death benefit
Whole life insurance policies mature when the insured reaches the age of 100. If the owner of a whole life policy dies at age 80, and there are no outstanding loans on the policy, __ portion of the death benefit will be paid to the beneficiary
The amount and payment period of the premium, the face amount, and the period for protection
__ are the elements of an adjustable life policy that can be changed by the policy owners
Based on the average age of the insureds
__ is how the premium is determined in a joint life insurance policy
Universal life
In __, the policy owner can skip premium payments without the policy lapsing
When the insured reaches age 100
Type of whole life insurance policy that requires a payment of premium at its inception, and in addition to providing insurance protection for the life of the insured, endows at the insured's age 100
20 years or until the insureds death, whichever comes first
Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid for __.
Premium increases with each renewal
__ occurs to the premium in an annually renewable term life policy
The employer
__ owns a group life insurance contract
Purpose, size, financial strength, and turnover
Characteristics of the group that underwriters will consider before issuing a group life policy
Annually renewable term
Group life insurance policies are written as __ insurance
Loan values
__ are the living benefits of whole life insurance
