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