types of policies
what policy component must decrease in decreasing term insurance
face amount
when would a 20-pay whole life policy endow?
when the insured reaches age 100
wholelife policies provide protection until the insured reaches what age
100
a policy states that it will pay a specified face amount if the insured dies during the 20 year premium paying period and nothing if death occurs after the 20 year period what type of policy is this
20 year level term
a straight life policy has what type of premium
a level annual premium for the life of the insured
what type of premium is charged on a straight life policy
a level premium for the life of the insured
for variable product underlying assets must be kept in
a separate account
what are the two phases of an annuity
accumuation and annuitization
in joint life policies what amount is payed upon the first death
all of it
in flexibale premium payment annuities the term flexible refers to what
amount of premium
return of premium life insurance is what
an increasing term isrance polisy that pays an additional death benefit to the beneficiaty
the death protection component of a universal life policy is expressed as what type of coverage
annually renewable term
the death protection component of universal life insurance is always a
annually renewable term
who receives income payments from an annuity
annuitant
whose life expectancy is taken into consideration in an annuity contract
annuitant
if there is no namedd beneficiary for the annuity benefits to which entity will the benefits be paid
annuitants estate
an individual has a contract that will provide him with a cerain amount of income for the rest of his life however this is ot a life insurance policy what type of contract does the person have
annuity
in an annuity the accumulated money is converted into a stream of income during which phase?
annuitzation period
if the annuitant dies during the accumulation period whi will receive the annuity benefits
beneficiary
what is a feature of a variable annuity
benefit payment amounts are not guaranteed
in variable universal life insurance to what policy component does the term vairable refer
cash value and death benefit
what happens to the cash value when a whole life insurance policy matures
cash value is paid to the policyowner
the type of policy that can be changed from on that does not accumulate cash value to the one that does
convertable term policy
what is another name for interest sensitive whole life insurance
current assumption life
interest sensitive whole life is also reffed to what
current assumption life is wole life policy that provides a guuaranteed death benefit to age 100
an individual has just borrowed 10,000 on a 5 year note from his bank. The note is due in installments. what type of life insurance policy would be best suited to this situation
decreasing term
what type of life insurance is best suited to cover a mortgage
decreasing term
if the annuitant dies before the annuitization period starts what will the beneficiary receive
either the amount paid into the annuity or the cash value wichever is greater
what type of annuity credits its interest based upon an index such as S&P500
equity indexed annuity
what does the term level refer to in level term insurance
face amount
which policy component decreases in decreasing term insurance
face amount
an annuity purchased with multiple payments that begin income payments after one year from the moment of purchase is known as what type of annuity
flexible premium differed annuity
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 what time period
for 20 years or until the insureds death wichever occurs first
how long will life annuity with a 15-year period certain pay
for the ife of the annuitant unless he dies within the 15 years of the annuitaztion period the the payments will last for 15 years
how long will a life annuity with a 15 year period cerain pay?
for the life of the annuitant unless he she dies within the first 15 years of the annuitzation period
what are the two classifications of annuities according to the time when annuity payments begin?
immediate and defferred
what type of annuity can be purchased with a single premium
immediate annuity
a return of premium term life policy is written as what type of term coverage
increasing
during partial withdrawal from a universal life policy what portion if any will be taxed
interest earned on the withdrawn cash value
what is an equity indexed annuites do
invest on an aggressive basis in order to yield higher returns
what best describes annually renewable term insurance
it is level insurance
variable whole life insurance is based on what type of premium
level fixed
mortality tables are used by insurance companies to predict what
life expectancy and the death rates for specific groups of individuals
ther form of life annuity which pays benefits throughout the life time of the annuitant and also guarantees payment for a minimum number of years is called
life income with period certain
what annuity settlement option provides income payments to the annuitant for the duration of his or her life and also guarantees payment for a specified number of years
life income with period certain
what type of license is required to sell variable annuities
life insurance license and securities license
what type of life insurance policy is life paid up at age 65
limited pay whole life
your client wants both protection and savings from the insurance and is willing to pay premiums until retirement at age 65 what would be the right policy for this client
limited pay whole life
a whole life policy that requires that the policyowner only pays premiums for a specified number of years is known as what kind of policy
limited-pay whole life
can a business or a corporation be an annuitant
no an annuitant must always be a natural person
how soon can income payments begin in an immediate annuity
no later than 1 year from the time of annuity purchase
with a single premium deferred annuity when will the annuity payments become available
no sooner than 1 year after the annuity purchase
what universal life option has a gradually increasing cash value and level death benefit?
option A
what are the death benefit options in universal life policies
option A-level death benefit Option B increasing death benefit
what type of life insurance offers an appllicant a cash value element
permanent insurance usually whole life
who is entitled to cash values in a life insurance policy
policy owner
a man decided to purchase 100,000 annually renewable term life policy to provide additional protection until his children finished college he discoverd that his policy
required a premium increase each renewal
which type of life insurance policy generates immediate cash value
single premium
what type of whole life insurance policies only 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 age 100
single premium whole life
what type of whole life insurance policy generates immediate cash value single premium whole life
single premium whole life
what type of annuity is suitable for someone who wants to select the benefit option that will pay the largest amount only for as long as the annuitant lives
straight life
what is called a second to dies policy
survivorship life
whats the difference between joint and survivor ship life insurance
survivorship life pays on the last death rather than upon the first death
what would help prevent a universal life policy from lapsing
target premium
what type of life insurance policy offers pure death protection
term
what elements of an adjustable life policy can be changed by the policy owners
the amount and payment period of the premium the face amount and the period for protection
regarding annuity payments what is the difference between the annuitant and the beneficiary of an annuity?
the annuitant receives payments from the annuity during the annuitization period the beneficiary receives benefits after the annuitants death
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 age 80 and there are no outstanding loans on the policy what portion of the death benefit will be paid to the beneficiary
the full death benefit
in annually renewable term policies what is the annual premium based upon
the insureds attained age
who bears the investment risk in a fixed annuity
the insurer
what is the difference between a single premium and a flexible premium payment options in a deferred annuity
the number of payments that purchase the annuity
what determines the cash value of a variable life policy
the performance of the policy portfolio
what happens to the premium in an annually renewable term life policy
the premium increases with each renewal
how is the premium determined in a joint life insurance policy
the premium is based on the average age of the insureds
why are policy loans not available on term insurance
there is no cash value to borrow against
what is the main reason for purchasing an annuity
to provide income that the annuitant cannot outlive
under option B in a universal life policy what happens to the death benefit
under option B the death befefit increases each year by the amount of the cash value increases
what policy would have an irs required corridor or gap between the cash value and the death benefit
uneversal life option a
in what type of life insurance policies can the policy owner skip premium payments without the policy lapsing
universal life
what policy allowed policy holders to withdraw however is usually charged and the amount and frequency of withdrawals are usually limited
universal life
in a joint life policy when is the death benefit paid
upon the first death
what type of annuity requires an agent to have a securities license
variable annuity
when does an adjustable life policy accumulate cash value
when the premiums paid are more than the cost of the policy
what type of life insurance policy provides permanent protection
whole life
what type of insurance would perform the function of cash accumulation
whole life insurance