Wa Life- Life Insurance Policies
A policy sates that it will pay a specified face amount if the insured dies during the 10 year premium=paying period and nothing if death occurs after the 20 year period. What type of policy is this?
10-year level term
What type of premium is charged on a straight life policy?
A level premium for the life of the insured
The policyowner of a whole life insurance policy is also the insured. What age must the insured attain in order to receive the policy's face amount?
Age 100
Group life insurance policies are written as what type of insurance?
Annually renewable term
The death protection component of a universal life policy is expressed as what type of coverage?
Annually renewable term
What type of life insurance policy can be changed from a policy with no cash value to one that generates cash value?
Convertible term
What does "level" refer to in level term insurance?
Face amount
What are the characteristics of the group that underwriters will consider before issuing a group life policy?
Groups purpose, size, financial strength and turnover
What type of life insurance policy is Life Paid-up at Age 65?
Limited-pay Whole Life
What are the "living benefits" of whole life insurance?
Loan values
What are the death benefit options in universal life policies?
Option A- level death benefit, and Option B= increasing death benefit
What type of whole life insurance policies only requires a payment of premium and its inception, and in addition to providing insurance protection for the life of the insured, endows at the insureds age 100?
Single premium whole life
What elements of an adjustable life policy can be changed by the policyowners?
The amount and payment period of the premium, the face amount, and the period for protection
Who owns a group life insurance contract?
The employer
In term policies, what happens to the premium throughout the term of the policy?
The premium remains level
Why are policy loans not available on term insurance?
There is no cash value to borrow against
What is the purpose of establishing the target premium for a universal life policy?
To prevent the policy from lapsing
In a joint life policy, when is the death benefit paid?
Upon the first death
When does an adjustible 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 is the major difference between the most common types of whole life policies: Straight Life, Limited Payment and Single Premium?
Premium payment mode
