Insurance policies
Describe an adjustable life policy
Ability to change death Benefit
____ Life insurance is purchased to protect a borrower if a lender dies and cannot repay a loan
Credit
The cash value and potential death benefit of a VL policy vary ___
Daily
A VL Contract as a guaranteed minimum
Death benefit
When converting policies, what must remain constant
Death benefit
What is predetermined a whole life contract
Death benefit, cash value, premium, surrender value
Generally, credit insurance uses ____ term
Decreasing
What type of insurance policy is most often used as a mortgage redemption policy?
Decreasing term insirance
The premium on an annual renewable level term policy increases
Each year
What life insurance policy pays a benefit at the earlier of death or the end of specified period
Endowment
What life insurance policy uses dividends to purchase one year term insurance to supplement a reducing death benefit
Enhance ordinary life
What whole life product has a guaranteed minimum return and opportunity for growth based on stock performance
Equity indexed whole life
Term insirance build cash value
False
Upon death, the cash value is payable in addition to the whole life death benefit
False
What policy combines whole life insurance and a decreasing term rider providing coverage on the breadwinner
Family income policy
Name the policy that combines whole life insurance and a level term rider providing coverage on the breadwinner
Family maintenance plan
The premium on a universal life policy may be
Flexible
What whole life product has lower premiums increase each year for the first 3 to 5 years
Graded premium whole life
Endowment
Heavy cash savings for retirement or college money
Which life policy has cash value games with mirror or are tied to a stock market index
Indexed life insurance
What is target premium
Initial premium established to fund a universal life policy
What is another name for a first to die policy
Joint life
Which policy pay the death benefit and concludes or ends on the death of any insured party list on the contract
Joint life policy
A jumping juvenile policy may also be called
Juvenile life insurance
The death benefit and premium in a whole life contract are ____ Throughout the owners lifetime
Level
What whole life product has lower premiums for the first 3 to 5 years of the contract, with a one time premium increase
Modified premium whole life
Does a term life policy have cash value
No, term life is pure insurance
What is a single pay whole life
Policy with a one time premium and coverage provided until age 100 or death
Describe an equity indexed life policy
Policy with cash value tied to an equity indexed
In a group credit policy, the bank is both the ____ and the _____
Polocy owner and beneficiary
What age is used to determine level term policy renewals
Premiums are based on a persons actual age and renewal premiums will increase
Describe a whole life policy
Provides death benefit protection, cash value, level death benefit, level premium
Describe a family policy
Provides whole life benefits on the breadwinner, with a level term insurance on spouce and dependents
Turman Sherance is described as ____ protection
Pure
Which whole life payment option would have the lowest overall premium over the policy life : 10-pay , 20 pay, single pay
Single pay
What is another name for a second or last to die policy
Survivorship life
Which policy pays a death benefit but only after the last remaining policy insured dies
Survivorship life
What are the disadvantages of term insurance
Temporary protection, no cash value, premiums increase with the renewal
What type of insurance provides temporary protection
Term
Who assumes the investment risk in a traditional insurance contract
The insurance company
Cash value generally begins to build within a whole life policy sometime in the ___ year
Third
A universal life policy allows for partial withdrawal of cash value
True
A whole life policy never requires a renewal
True
Term insurance is temporary, but whole life is permanent
True
What non-traditional life insurance policy has a flexible death benefit and a rate of return that is interest sensitive
Universal life policy
How long will coverage be provided under 10 pay Whole life product
Until death or age 100
VL
Variable life
Which life insurance policy has a cash value that is invested in securities it has the potential for greater Growth
Variable life policy
What policy compose a variable life with flexible premium
Variable universal life
A 20 year family maintenance income policy pays for five years if Insured dies 15 years after the policy issue
Well, regardless of the death date of the policy will pay for 20 years since it uses level term insirance
What is an unbundled premium
When a life policy owner receives an annual statement breaking down all the policy expenses and charges
And the death benefit of a variable life policy increase over time
Yes
Does a variable life policy you have a guaranteed death benefit
Yes
Whole life premium rates are based on a rate per $____ Of coverage
$1000
A 10 year level term policy provides coverage for ___ years
10
Which whole life payment option would you have the highest annual premium : 10,20,30
10 - fewer payments means more money
The cash value of a whole life policy grows at a minimum interest rate of ___ to ___
3 - 4
The death benefit of a term policy is payable only if death occurs during the ______ period
Term Coverage
What type of policy protects the bank in the event that a borrower dies
Credit life
What is another name for interest sensitive whole life insurance
Current assumption whole life
Premiums on a VL policy are
Fixed
The cash value of a single premium whole life policy will equal the death benefit at age
100
For how long will the premium on a 20 year level term policy remain level
20 years
A jumping juvenile policy has a death benefit that increases to ___ What time is it stated value with no premium increase
5
All life is a combination of term protection and
Cash value
What are the advantages of term insurance
Initially less expensive than whole life