Term Life and other plans

Level Premium

the premium that does not change throughout the life of a policy

Annually Renewable Term

-Renews each year without proof of insurability -Premiums increase due to attained age

Renewability

a term life policy provision allowing the insured to renew the policy at the end of its term without having to show evidence of insurability

Industrial Life Insurance

a type of insurance in which the policies are sold in small amounts and an agent of the company collects the premiums at the insured's home

Ordinary Life Insurance

life insurance of commercial companies not issued on the weekly premium basis. It is made up of several types of individual life insurance, such as temporary (term), permanent (whole).

Family Income Policies

pay an income beginning at the insured's death and continues for a period specified from the date of policy issue

Term insurance has which of the following characteristics?

provides the greatest amount of coverage for the lowest premium (no cash value)

credit life

A special type of coverage written to pay off the balance of a loan in the event of the death of the debtor.

Decreasing Term

A type of life insurance that features a level premium and a death benefit that decreases each year over the duration of the policy.

Term Insurance

Life insurance coverage for a specified period of time, less expensive than whole

family policy

combines whole life with term insurance to cover family members in a single policy, providing coverage on every member of a family

Family Plans

- Family income policies - Family Maintenance policies - Family policy

Uses for Term Insurance

- Mortgage protection term - Credit life

Convertible Term

Term insurance that specifically permits "conversion" of the policy into permanent protection without proof of insurability.

Level Term Insurance

Term insurance where the face value of policy remains the same from the date the policy is issued until the date the policy expires. ("level refers to death benefit which does not change)

Increasing Term

Term life insurance that provides an increasing face amount over time based on specific amounts or a percentage of the original face amount.

Mortgage protection term

Term life insurance whose face amount decreases to match the projected decreases in the principal amount owed under a mortgage loan.

Family Maintenance Policies

combine whole life and level term. Only the primary breadwinner is covered, not the entire family. In contrast to family income policies, the income period begins on the date of the primary breadwinner's death.

Juvenile Insurance or (jumping juvenile)

face amount increases at predetermined age, often age 21, the face amounts jumps the the premium remains level.