Life Insurance Policies

The death benefit and premium in a whole life contract are ______ throughout the owner's lifetime.

The death benefit and premium in a whole life contract are ___level___ throughout the owner's lifetime.

What is attained or actual age conversion?

Conversion where new policy premiums are based on a person's current age

True or False: Term insurance builds cash value.

False

What are loan option and cash surrender?

Methods available to the policy owner to obtain or access the policy's cash value

What are the two UL death benefit options?

Options A and B

What is cash value?

The equity that grows inside a permanent policy

A 10-year level term policy provides coverage for ______ years.

A 10-year level term policy provides coverage for ___10___ years.

A VL policy has a ______ premium and a cash value that is ______.

A VL policy has a level

A jumping juvenile policy may also be called ______.

A jumping juvenile policy may also be called ___juvenile life insurance___.

A jumping juvenile policy has a death benefit that increases to ______ times its stated value with no premium increase.

A jumpring juvenile policy has a death benefir that increases to ___5___ times its stated value with no premium increase.

What two licenses are required to sell variable products?

A life insurance and FINRA license

What type of policy protects the bank in the event a borrower dies?

Credit life

For how long will the premium on a 20- year level term policy remain level?

For 20 years

Generally, credit insurance uses ______ term.

Generally, credit insurance uses ___decreasing___ term.

As a client ages, what happens to her premium payments in a variable life policy?

Payments in a variable life policy remain fixed (level).

______ pay a living benefit at end of a set timeframe or a death benefit should death occur during that timeframe.

___Endowments___ pay a living benefit at end of a set timeframe or a death benefit should death occur during that timeframe.

What is another name for interest- sensitive whole life insurance?

Current assumption whole life

What type of insurance policy is most often used as a mortgage redemption policy?

Decreasing term insurance.

Whole life premiums remain ______ for the life of the policy.

Whole life premiums remain ___level___ for the life of the policy.

______ Life Insurance is purchased to protect a borrower if a lender dies and cannot repay a loan.

___Credit___ Life Insurance is purchased to protect a borrower if a lender dies and cannot repay a loan.

A WL death benefit and premium both remain _______ for the life of the policy.

A WL death benefit and premium both remain ___level___ for the life of the policy.

What whole life product has lower premiums that increase each year for the first 3 to 5 years of the policy?

Graded premium whole life

Straight life has a ______ and ______ premium.

Straight life has a ___predetermined___ and ___level___ premium.

What is another name for a Second or Last to Die policy?

Survivorship Life

The death benefit of a term policy is payable only if death occurs during the ______ period.

The death benefits of a term policy is payable only if death occurs during the ___term coverage___ period.

A 20-year endowment will mature at the end of ______ years.

A 20-year endowment will mature at the end of ___20___ years.

A 5-year level term policy will renew every 5 years subject to _______.

A 5-year level term policy will renew every 5 years subject to ___maxium age limitation___.

What policy combines whole life insurance and a decreasing term rider providing coverage on the breadwinner?

A Family Income Policy

Which life policy has cash value gains that mirror or are tied to a stock market index, such as the S&P 500?

An Indexed Life Insurance policy

What life insurance policy pays a benefit at the earlier of death or the end of a specified period?

An endowment

At what age is a whole life policy's cash value assumed to equal its death benefit?

At age 100

Name the ability to change from a term policy to a whole life policy without providing evidence of insurability?

Convertibility

Describe an endowment.

Endowments have heavy cash savings, intended for future uses such as retirement or college funding.

True or False: A universal life policy allows for partial withdrawals of the cash value.

True

Describe an Adjustable Life policy.

A policy that offers the ability to change the death benefit based on a person's needs

What nontraditional life insurance policy has a flexible death benefit and a rate of return that is interest-sensitive?

A universal life policy

What is single-pay whole life?

A whole life policy with a one-time premium and coverage provided until age 100 or death

What age is used to determine level term policy renewals?

Premiums are based on a person's actual age, and renewal premiums will increase.

What is the renewability feature?

The ability to renew a term policy without having to provide evidence of insurability.

The cash value of a single premium whole life policy will equal the death benefit at age ______.

The cash value of a single premium whole life policy will equal the death benefit at age ___100___.

The cash value of a whole life policy grows at a minimum interest rate of ______% to ______%.

The cash value of a whole life policy grows at a minimum interest rate of 3% to 4%.

True or False: Regardless of cash value performance, VL policies have a guaranteed minimum death benefit.

True

What whole life product has lower premiums for the first 3 to 5 years of the contract, with a one-time premium increase?

Modified premium whole life

Describe an Equity Index Life policy.

Usually a UL policy with cash value tied to an equity index account; offers a guaranteed minimum rate of return

What policy combines variable life with flexible premiums?

Variable Universal Life

Which whole life payment option would have the highest annual premium -10, 20, or 30 pay?

10 Pay. The fewer the payments, the greater each payment must be for the policy to mature.

Cash value generally begins to build within a whole life policy sometime in the ______ year.

Cash value generally begins to build within a whole life policy sometime in the ___third___ year.

Cash value increases with every ______ payment after the ______ year.

Cash value increases with every ___premium___ payment after the ___third___ year.