Types of individual life insurance
Modified endowment contract (MEC)
Created when the total premiums paid into the policy or greater than required to pay of a policy faster than a seven pay policy
Family protection policy
The main breadwinner is covered with whole life with premium based in there attained age while remaining members of the family are covered by term insurance newborn children added to the plan automatically with no increase in premium in the Pindingt to make convert their term life into permanent insurance and their present age without evidence of insurability
25 year Endowment policy
The matter how old you are you always pay the highest premium for a
Single premium policy
The most expensive policy because one not sun provides insurance until age 100. Build cash value
Will have higher premiums every five years
A five year renewable and comfortable term policy will have what
Joint life
A policy that has two or more lies covered the face amount is paid on the first to die
Limited pay
A whole life policy that makes it possible to stop premium payment at the end of a specific time without a reduction
Without evidence of insurability
Convertible term policies provide conversion of coverage into permanent insurance
Convertability
Allow the insured to switch from term insurance to permanent insurance without answering any medical questions were undergoing a physical exam
Modified premium policy
Allows an insured to pay a slightly lower level premium during the early years of the policy and later pay an increased level premium. The premium elevate or balloons from a low level premium to a higher level premium at a specific time in the contract
unbundled
Allows the following factors of life insurance policy to be separately and lives in evaluated i.e. investment featuring cost of insurance and administrative costs
Modified endowment contract
Any cash value taken out of a policy before age 59 1/2 is taxable up to10% for a premature distribution penalty
Policy anniversary date
Any change in the policy face amount may be done when
Universal life
As long as there is sufficient cash value to make the next month cost of insurance no more premium has to be paid for what
Universal life
Charge against account to pay the cost of insurance at the current rate for the term insurance and also the adjustment is credited to current interest rates to the cash value
Family Income
Combines Whole Life insurance with a Decreasing Term Rider also written on the same person
Death benefit option A
Death option is best for accumulating cash value at the lowest premium which is included in the face amount
The home mortgage
Decreasing term insurance might be best to use for covering what
Annual renewable term (ART)
Ensuring the right to renew the policy each year without regard to the insurance health rates Premiums go up each year because the rates are based on the insurance attain or current age. Face amount stays the same premium is gradually increase
Renewability
Face amount stays the same premium is the same during each renewal period, premiums increases every time there is a new renewal period
Family maintenance
Features a whole life insurance level term rider
Universal life
Flexibility high interest crediting rates in unbundling are characteristics which one of the life insurance products
Adjustable premium policy
Have a contractual right to change the premium payment schedule and face them out as long as there is enough cash value to make the next scheduled payment there is no penalty for not making a premium payment
Endowment
Have face amount in cash value design to pay off the face amount in life insurance benefits if the insured dies before the period is reached if the insured is alive at the end of the damage. The insured will receive a check for the face amount of the policy
Paid up at age 65 with continuing cash values
I life paid up at age 65 policy is
Limited pay policy
I'm sure the policy that continues to provide protection after the premium. And it is called
Family income
If the breadwinner lives beyond the period of decreasing term rider then I'll leave the whole life policy would pay off for what policy
Modified endowment contract
If the cash value of a life insurance policy equals or exceeds the face value before age 95 it will lose tax advantages and become which of the following
Whole life insurance
If the insured lives to age 100 he or she will receive the face amount of the policy in a lump sum check with guaranteed cash value would equal the face amount at age 100
Rider
Increasing term insurance is almost always sold as a
Decreasing insurance
Less expensive type of insurance because the face amount of the policy systematically produces until there is no more life insurance left face amount decreases premium stay the same
Term insurance
Lowest cost of insurance
Term
Non-cash value building type of life insurance policy that provides protection only for a specified period of time
Death benefit option A
Option in which the policies death benefit remains level for as long as possible in the Corredor of insurance has been reached with a face amount of the policy be increased
Death benefit option B
Option in which the policies that benefit paid the face amount of the policy plus the cash value
Death benefit option B
Option is best for death benefit because it provided you are always behind the face amount of insurance each month and getting the cash value added death benefit
Return of Cash value Rider
Pays additional death benefit equally to the cash value
Endowment
Permanent life insurance policy's that are designed to endow well before the age of 100
Family protection policy
Policy designed to cover every family member with the same policy
Limited payment whole life
Policy in which a person elected to pay premiums for a set period of time or until a certain age, after premium paying period ends coverage continues to age 100 the shorter the period the higher the premium will be
Universal life
Policy in which the insured pays the current cost of insurance for their age and any excess premiums are invested by the insurer and interest is paid upon those excess funds
Universal life
Policy is flexible in premium payment schedule and variations in the face in there
Last survivor
Policy is usually required for a estate planning situations
Jumping juvenile
Policy starts with a low face amount but it jumps to a multiple of the original face a male and a certain age
Jumping juvenile
Policy that automatically increases face amount at a given age
joint life insurance
Policy written to be sure to or more individuals with the face amount paid upon the death of the first to die
Step rate premium
Premium for annual renewal term policy is what
Term insurance
Premium increase with each end of this insurance
Graded Premium policy
Premium increases each year for several years and then levels out for the duration of the policy premium looks like a stairstep
20 pay life
Premium is paid for a period of time and then you have a pay Policy cash value is continue to grow until age 100 even after premiums have stopped but more slowly. Guaranteed cash value equals the face amount at age 100
Life paid up at age 65
Premiums are paid until a certain age the cash values will continue to grow until age 100 even after premiums have stopped the guaranteed cash value equal the face amount at age 100
Level premium policy
Premiums remain the same never increasing or decreasing for the life of the contract
Level insurance
Remains the same amount of insurance and premium over the period of time involved face amount stays the same premium stays the same
Universal life
Reminder of premium goes into a cash value account from this cash value count the amount needed to pay the cost of insurance for the face amount of the policy is deducted on monthly basis
Corridor of insurance
The amount of insurance at risk
Load
The difference between the guaranteed interest rate and the current interest rate
Death benefit option B
What death option has a cash value that is paid in addition to the face amount for the total death benefit
Modified life insurance
Whole life insurance with reduced level premiums for the first several years in a higher level premium in later years is called
Renewability
Will allow the insured to continue coverage after the initial period of insurance without answering any medical questions were undergoing a physical exam
Whole life insurance
life insurance that pays a benefit on the death of the insured and also accumulates a cash value. For every dollar of cash value accumulated there is a decrease in the amount of pure insurance being bought