Life Insurance Policies
variable life insurance is regulated by
-the insurance department -the federal government -TheSEC
The creditor is the owner and the beneficiary of
a credit life policy
to sell variable insurance products in this state agents must have
a life insurance license and a registered representative license (FINRA)
In order to qualify for small group life insurance, a group must be formed for
a purpose other than attaining life insurance.
A universal policy has two components: an insurance component and a cash account. The insurance component (or the death protection) of a universal life policy is always
annual renewable term insurance.
a universal life policy is best describes as an
annually renewable term policy with a cash value account
Term policies provide for the greatest amount of coverage for the lowest premium,
as compared to any other form of protection.
survivorship life benefits is paid
at the last death
universal life would be considered
interest sensitive
what would help a universal life policy from lapsing
target premium
creditor can only insure the debtor for
the amount owed
option A
the death benefits remains level while the cash value gradually increases
The premium will remain level during the entire level premium term policy period. If the policy renews at the end of the term,
the premium will be based on the insured's attained age at the time of renewal. (it will increase)
when would a 20-pay whole life policy endow
when the insured ages 65 -premium is completely paid off in 20 years
Whole Life policies are referred to as permanent protection, since as long as the premium is paid coverage
will continue for the life of the insured or till the insured's age 100.
Insurers selling variable products invest their customer's monies in a separate account, which is very similar to a mutual fund. Since there is no guaranteed rate of return, customers must bear the investment risk.
cash value is not guaraneeted
universal life policies have two types of interest rates
current (nonguaranteed) interest rate and backs the cash value with a contract (lower guaranteed) rate of interest.
Straight Life policies charge a level annual premium throughout the insured's lifetime and provide a level,
guaranteed death benefit.
Annually renewable term is a form of .
level term insurance that offers the most insurance at the lowest cost
In credit life insurance, creditor may require that the debtor has a life insurance, but
they cannot tell you who to buy the insurance from.
The employee usually has a period of __ days after terminating from the group in order to exercise the conversion option. During this time, the employee is still covered under the original group policy.
31
If the master contract is terminated, every individual who has been on the plan for at least ___ years will be allowed to convert to individual insurance of the same coverage.
5
a domestic insurer has just decided to change the investment policy of a separate account. after filling this with the director how soon will it become effect
60 days after they are filled with director
Whole life policies offer
guaranteed, level death benefit, cash value that is scheduled to equal the face amount at the insured's age 100, and living benefits, which include policy loans.
with group life the cost of coverage is based on
ratio of men and women
Survivorship life (also referred to as _____________ policy) is much the same as joint life in that it insures two or more lives for a premium that is based on a joint age.
"second-to-die" or "last survivor"
If a person has life insurance under a group plan and then leaves the group, he/she may convert group coverage to individual coverage within
31 days of leaving the plan without proof of insurability.
under a 20-pay whole life policy in order for the policy to pay the death benefit to a beneficiary the premium must be paid
for 20 years or until death whichever occurs first
If any individual insured is not given notice of their right to an individual policy within 15 days, additional time may be granted. This additional period cannot extend more than ___days beyond the group policy's next expiration date.
60
the owner of an adjustable life policy has the following privileges:
increasing or decreasing the premium, changing the premium-paying period, increasing or decreasing the face amount of coverage, or changing the period of protection.
Whole life policies offer level premium based on
issue age
survivorship life policy has a _____ premium compared to a joint life policy
lower
universal life allow the policy owner to pay
more or less than the planned premium
an insured has a level term life insurance policy that is guaranteed renewable and also includes a re-entry provision. the re-entry provision would allow the insured to renew the policy and
pay a lower renewal premium by providing insurability
with limited pay whole life
premium payments will cease at age 65, but coverage will continue to death or age 100
a domestic insurer issuing a variable contracts must establish one or more
separate accounts
Under Option B the death benefit includes
the annual increase in cash value so that the death benefit gradually increases each year by the amount that the cash value increases.
Annually Renewable Term policies' premiums are adjusted each year to________________; however, the policy may be guaranteed renewable. Death benefits remain level, and as with any term policy, there are no cash values.
the insured's attained age
with universal life The cash account accumulates on a tax deferred basis each year and earns
either the guaranteed contract rate or the current rate, whichever is higher.
all other factors being equal what best describes the coverage provided by term policies compared to any other form of protection
greatest
Typically, the owner of an adjustable life policy has the following privileges; increasing or decreasing the premium; changing the premium-paying period;
increasing or decreasing the face amount of coverage; or changing the period of protection.