Insurance Policy

Face amount

Amount listed on first page, amount paid

Universal Life

Answer to high interest rates, universal life prducts with high interest rates

WL Advantage (Nonforfeiture Value)

Cash value belongs to the policyowner

WL Advantage Policy Loans

Cash value can be loaned to the policyowner (loan does not have to be repaid until the policyowner elects to

Interim Term

Cover the period of time before permanent protection is to begin. (Converts no later than 11 months), premium based on application

Increasing term

Death benefit increases over the life of policy and premium remains level

Decreasing term

Face value decreased down to zero at date of expiration. Usually used to cover balance of mortgage.

WL Advantage

Guaranteed Cash Value, not first couple of years, but until age 100 when cash value is policy's face amount;

Term insurance

Guaranteed death benefit only

Adjustable Live (WL) Changes

Higher benefit, proof of insurability

Level term

Level death benefit and level premium

Reentry option, reissue

Option for lower premium rate after evidence of insurabilility

Original Age

Original term policy was purchased

Disadvantages to term

Over a long time, becomes very expensive, temporary protection for a limited period of time, pure death protection only, not renewable beyond a certain ages such as 65 or 70

Single Premium Whole Life

Paid with only one premium ( will pay less than if stretched)

Limited Payment Whole Life

Pay for entire policy in shorter time (broken down) into any desired number of installments.20, 30, paid age 65

Advantages and Uses of Whole Life

Permanent insurance, covers death, dying and burial. Level of premium known, forced savings, Builds Cash Value/supplemental to retirement income

Continuous Premium Whole Life (Straight life Insurance)

Policy is stretch premium payments over the whole life of insured to age of 100,

Universal life

Premium flexibilty and term

Disadvantages of Whole Life Insurance

Premium paying period may be longer than insured's income-producing years, does not provide as much protection per premium dollar as term.

WL- Level Face Amount

Premium remain level, face amount of policy does not change

Attained age

Present Age

Variable Life Insurance (VLI) whole life policy (WL)

Protects from erosion of their insurance dollars due to inflation. Hedge against inflation,establishes separate accounts. Transfer policy funds among accounts and investments

Long-term care (LTC) insurance

Reimbursed health and social service expenses incurred in a nursing facility.

Renewable term

Renewed at end, without evidence of insurability

Economatic Whole Life

Term rider that uses dividends to purchase additional paid-up insurance. 70K whole life 30K term

Step-rate premiums

Term, up for renewal, age of insured goes up, premium goes up

Univeral Life Guaranteed Interest

Usually about 4%, excess interest earned by the insurer

Adjustable Life (WL)

adjust policy's face amount, premium, and length of protection with out having to complete a new application

Variable Life Death Benefits (WL)

can also change

Universal Life benefit

can increase without buying another policy, change in death benefit does not require the issue of a new policy.

Universal Life Sales Charges

charge (load) deducted from each premium, sales, admin fees, rest goes to cash account

Advantages to term

cost low, decreasing can cover decreasing debts, term is flexible, add additional insurance as a rider

Permanent insurance

death benefit plus cash accoumulation

Variable Life Cash Values (WL)

determined on daily basis, guaranteed death benefit, but no guarantee of cash value.

Current Interest (Universal Life)

equal to guaranteed interest plus excess interest

Converible Term

exchange temporary protection fr permeanent protection without evidence of insurability. Used to convert to some whole life policy

Universal Life Premium Requirements

flexibility of premium payments. Sufficient cash value, can pay premiums in whatever amounts at whatever times.

Current Assumption Whole Life (interest sensiitive whole life)

flexible premium payments tied to current interest rate fluctuations

Universal life offers

flexible premium, adjustable benefit life insurance contract that accumulates cash value.

Universal Life Death Benefits Option 1

level death benefit equal to policy amount, same concept as whole life

Inteterminate Premium Whole Life

nonparticipating contracts that were developed to compete with participating policies. These policies dual premium concept, max premium and discounts that may reduce premiums

(Whole Life) Level Premiums

pay more at first, less later

Universal Life Cash Value Adjustments

pay the cost of desired insurance coverage., credit to the cash value account of interest at the current rate.

Indeterminate premium trm

premium fluctuate dependendant on insurer's mortality tables

Term

premiums are level

Whole Life Insurance

provide protection for the whole life of the insured

Universal Life Death Benefits Option 2

provides increasing death benefit, plus the cash amount. higher expense for cost of the death protection over the life of the policy and less of premium will be deposited in the cash account

Back-endsales load

service charges for withdrawals from the policy and coverage charges

variable or variable universal life

term, plus premium and investment flexibilty

Premium flexibitly and term

universal life