Life Insurance Policies

Straight life policy

-level annual premium throughout the insured's lifetime -level, guaranteed death benefit -face value is paid to the insured at age 100 -lowest annual premium

decreasing term policy

-premiums remain level, only the face amount decreases -no cash value -used to pay off loans

Which component increases in the increasing term insurance?

Death benefit (Level annual premiums, increasung DB)

Which policy component decreases in decreasing term insurance?

Face amount (Level premium, death benefit that decreases)

Single premium whole life

Requires the entire premium to be paid in one lump sum at the policy's inception

When Group coverage is converted to an individual policy who determines the type of coverage?

The insurer (usually permanent insurance)

The death protection component of Universal Life Insurance is always

annually renewable term