Life insurance
What is term insurance
1.Provides financial protection from losses resulting from loss of life during a definite period of time 2.Least expensive 3.If policy holder dies during this tie, beneficiaries will be paid (protection ends when term expires) 4. Usually for a period of 1-20 yrs
What is the secondary purpose of life insurance
A means for saving or investing
Who needs life insurance
Anyone with dependents if dependents could no live in a similar manner after you die they would need life insurance
What are the steps to purchasing life insurance
Apply through an agent take a physical exam pay premium to receive protection
What are the 2 types of policies for term insurance
Renewable policy and convertible policy
What are the 2 payment options for whole life insurance
Straight life and limited payments policy
What is convertible term insurance policy
Term insurance that can be changed into some kind of more permanent insurance without taking examination
What is life insurance
The protection against financial loss associated with dying
What is required for a beneficiary to have insurable interest
They must receive some sort of financial benefit from that persons continued life
What question should you as if you have dependent
What would happen to my family who is financially dependent on me if I die tomorrow
What is a renewable term insurance policy
allows a person to continue term insurance for more terms without taking and examination
What is cash value
amount your insurance company will pay you if you give up you policy You can borrow from the insurance company up to the amount of your cash value
What are the factors that affect the cost of life insurance
current health, type of occupation, type of insurance policy, age of insured, gender
What is whole life insurance
permanent insurance that extends over the life time of the insured
What is a beneficiary
person named in the policy to receive the insurance benefits who has an insurable interest in the policy holder
What is limited payments policy
premiums paid till a certain number of years (20-30) or until the policy holder reaches a certain age (65)
What is straight life
premiums remain the same throughout the policy holder's life span (pay till death)
What are the 2 basic types of life insurance
term insurance and whole life
What is the primary purpose of life insurance
to replace the loss of income for those financially dependent upon the policy holder
