Kaplan Chapter 4
Original Age
Age at the time the original term policy was written
convertability
A ____ feature allows a policyowner to convert a term insurance policy to a permanent type of policy without evidence of insurability and without having to submit an application.
joint life policy (also called first-to-die policies)
A _____ usually covers two or more lives with the death benefit being paid when the first insured dies.
survivorship life policy (second-to-die or last-to-die)
A ______ insures two individuals and will pay the death benefit when the last insured dies.
Indeterminate premium whole life policy
A ______ is similar to a nonparticipating whole life policy except that it provides for adjustable premiums.
single premium whole life policy
A ________ has one payment made at the time of purchase.
Universal life Option B
Increasing death benefit (insurance amount plus cash account)
Attained age
Insured's age at the time of conversion
Universal life Option A
Level death benefit (insurance amount only)
Policy loan
Life insurance policies with a cash surrender value usually have loan provisions (_______) that allow the policyholder to borrow up to the cash value of the policy.
fixed and level
Like its premium, the death benefit of a whole life policy is ________
renewability
The ____ feature, with term life insurance, guarantees that the policy will renew (extend) at the end of its term.
separate account
The ______ is a fund held by the life insurance company and maintained separately from the insurer's general assets.
face amount
The amount of the death benefit is called the _____ because its usually found on the first (face) page of the policy.
increasing term policy
The death benefit of a ____ begins near zero and grows over the term of coverage.
decreasing term policy
The death benefit of a _____ declines over the coverage period until it reaches zero at the end of the term.
level term policy
The death benefit of a ______ equals the face amount throughout the term of coverage.
guaranteed minimum death benefit
The original face amount is the variable life policy ________
guaranteed (level) rate of interest
The policy cash value increases steadily over the life of the contract because it is regularly credited with a ________
straight life; ordinary life
The premiums for this whole life policy are the same each year for the duration of the contract. It is also referred to as ____ or _____
level premium
The purpose of a ______ while whole life policies is to make lifetime coverage affordable at older ages.
death benefit
The whole life policy ____ is payable upon the insured's death.
Variable universal life (also called flexible premium variable life)
Variable life is whole life with a separate account. _____ is universal life with a separate account.
Graded premium whole life policies
____ have an even lower initial premium than modified whole life policies.
Term
____ life insurance policies only offer a death benefit and remain in force for a specified period of time. No death benefit is payable if the insured dies after this term expires.
Return of Premium Term
____ policies will return all or a part of the premium paid for the policy if the insured is still alive at the end of the term.
Variable life insurance
_____ has a separate account instead of guaranteed cash value
Whole Life
_____ is a permanent insurance policy which is guaranteed to remain in force for the insured's entire lifetime provided the required premiums are paid, or to the policy maturity date.
Interest-sensitive whole life (also known as current assumption whole life)
_____ is a type of whole life insurance where the cash value can increase beyond the stated guarantee if economic conditions warrant
Juvenile life insurance
_____ is coverage written on the life of a child or minor.
Universal Life (UL)
_____ was designed for people who want flexible premiums and flexible coverage over the course of their lifetime.
Policy Surrender
_____-The "cash surrender" value of the whole life policy arises from the policyholder's rights to quit the contract and reclaim a share of the reserve fund attributable to the policy.
Variable policies
______ are permanent insurance policies designed to provide lifetime coverage for the insured and have cash value and a death benefit.
Modified premium whole life policies (sometimes called modified whole life policies)
______ have lower premiums during he first three to five years.
Equity-indexed universal life
______ is a permanent life insurance policy that allows policyholders to tie accumulation values to a stock market index such as the Standard and Poor's 500 Index.
Cash values
_______ are an integral part of a whole life policy, and reflect the reserves necessary to assure payment of the guaranteed death benefit.
Limited-payment whole life
________ policies allow for a lifetime of premiums to be paid in a shorter period of time