(Life) Types of Life policies

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joint and survivor arrangement lets survivor be paid _ of what was paid when both were alive

2/3

purest form of term insurance

ART (annually renewable term)

term insurance has or doesnt have cash value?

DOESNT

death benefit changes or no in level term insurance?

NO

to sell variable life insurance, agent must get all except

SEC registration

if insured skips premium on universal policy, it will or wont lapse?

WONT

_ period aka pay in period, time over which owner makes payments into annuity

accumulation

variable premiums purchase _ units in the fund

accumulation

(types of whole life policies) _ life can be either term or permanent, and convert between the 2. reqs proof of insurability

adjustable

joint life premium based on joint avg _ between insureds

age

fixed _ installments, annuitant selects how much each payment will be, insurer determines how long benefits paid

amount

if annuitant dies b4 annuitization, what will beneficiary get?

amount into plan or cash value, whatevers GREATER

least expensive first year premium?

annually renewable term

receives benefits of annuity, and for whom its written

annuitant

true regarding variable annuities?

annuitant assumes risk

_ period aka annuitization, liquidation or pay-out period is time during which sum accumulated is converted to stream of income

annuity

contract that provides income for specified period of yrs or for life

annuity

_ age is insured's age at time policy issued or renewed

attained

person who gets annuity benefits if annuitant dies

beneficiary

feature of variable annuities

benefit payment amounts NOT guaranteed!

(annuity refund) _ refund, beneficiary gets lump sum refund of principal minus benefits paid to annuitant

cash

_ value is policy's savings element or living benefit

cash

_ value of adjustable life only develops when premiums paid are more than cost of policy

cash

whole life insurance gives lifetime protection and accumulates _ value

cash

_ provision provides policyowner with right to covert policy to permanent insurance policy WITHOUT evidence of insurability

convertible

term insurance gives pure _ protection

death

ROP pays additional

death benefit

_ term, premium is level but death benefit or face amount decreases

decreasing

person borrows $$ from bank on loan with monthly payments, what type of life insurance would be best suited

decreasing term (face amount decreases with debt)

_ annuity, income payments start after 1 yr of purchase

deferred

withheld or postponed until specific time or event

deferred

variable life insurance products _ regulated by state and federal gov't

dually

incorrect regarding 100k 20 level term policy

end of 20 yrs, cash value is 100k

_ amount is amount for benefit stated in policy

face

joint life death benefit paid and stops upon _ death only

first

annuities may be classified as _ or variable

fixed

why is equity index annuity considered to be fixed annuity?

guaranteed minimum interest rate

_ annuity purchased with single lump sum payment/premium and income payments start within 1 yr

immediate

annuity for lottery benefits?

immediate annuity

ROP has a significant _ in premium cost, 25-50%

increase

(universal life) option B death benefit _ with cash value

increases

in ART, death benefit is same but premium _ annually

increases

return of premium (ROP) is _ term insurance

increasing

_ whole life, cash value dependent upon performance of equity index such as S&P 500

index

_ annuities are fixed that invest on aggressive basis to get higher returns

indexed

_ refund, beneficiary gets guaranteed installments until paid out

installment

in fixed annuity who bears risk?

insurance company

(universal life) has 2 components, _ and _ account

insurance, cash

what is taxed in partial withdrawal from universal life policy?

interest

_ life is designated for 2+ lives, can be term or permanent

joint

(universal life) option A death benefit is _, cash value increases

level

_ premium is when premium doesnt change thru life policy

level

fixed annuities gives a _ benefit payment amount

level

level premium term gives _ death benefit and premium

level

regardless of type of term policy, premium is

level

NOT type of whole life?

level term

most common type of temporary protection

level term

(types of whole life policies) higher annual premium, cash value builds up faster

limited pay life

basic function of annuity is to _ a principal sum

liquidate

_ is converting net worth into cash flow

liquidation

insured gets full face amount from whole life policy if

lives to 100

premium of survivorship compared to joint life is

lower

term policy gives the greatest coverage for the _ premium

lowest

date or time at which face amount equals cash values

maturity

policy _ is time when face value is paid out

maturity

insured gets 10 yr term life policy thats guaranteed renewable and convertible, what happens at end of 10 yrs?

may renew for another 10, higher premium

(annuity payment) life w/ guaranteed _, if annuitant dies b4 principal amount paid, remainder of principal amount goes to beneficiary

minimum

(universal life) amount needed to keep policy in force for current year is _ premium

minimum

shorter life expectancy gets _ benefit opposed to longer life expectancy

more

decreasing term common to insure payment of

mortgage

annuitant must be a _ person

natural

_ values is benefits in life insurance policy that policyowner cant lose even if policy surrendered or lapses

nonforfeiture

fixed _ installments, annuitant selects time period for benefits, specified amount of time only, whether or not annuitant living

period

_ life insurance refers to various types of life insurance policies that remain in effect for entire life of insured (or until age 100)

permanent

ROP, if insured stays healthy and alive when term expires, guaranteed return of _, not taxable

premium

(annuity payment) _ life aka life only aka straight life, payment ceases at annuitants death, highest monthly benefits

pure

best describes pure life annuity settlement

pure life gives payment as long as annuitant is alive

(universal life) insurance component is always annually _ term insurance

renewable

_ provision allows policyowner rights to renew coverage WITHOUT evidence of insurability

renewable

annuities purchased primarily for _ , or to fund _

retirement, college

in variable contracts, policyowner bears investment _

risk

financial instruments that may trade for value (stocks, bonds, etc)

securities

interest _ whole life aka current assumption life, provides guaranteed death benefit to age 100

sensitive

annuities certain are _ term annuities that limit amount paid to certain fixed period

short

(types of whole life policies) completely paid up after 1 premium and generates immediate cash

single premium whole life

(types of whole life policies) basic, lowest annual premium

straight life

annuities also used to provide _ settlements

structured

_ life pays on last death instead of first death

survivorship

(universal life) recommended amount that should be paid on policy in order to cover cost of insurance protection and keep policy in force is _ premium

target

term insurance (aka pure life) is

temporary

all life policies fall into 2 categories:

temporary and permanent

level, increasing, and decreasing are all types of _ coverage based on how face amount (death benefit) changes

term

(types of whole life policies) _ life, policyowner can increase premium paid into policy and decrease again

universal

variable _ life combines features of whole life with flexible premium of universal life, securities version of universal

universal

all true regarding convertibility option under term life insurance policy except

upon conversion, death benefit of permanent policy reduced by 50%

(types of whole life policies) _ life is level, fixed premium, investment based

variable

_ annuity is a hedge vs inflation and is variable that annuitant may get diff rates of return on funds into annuity

variable

annuities are a _ for liquidation of estate

vehicle

most common type of permanent insurance, endow at insured's age 100

whole life

(universal life) allow partial _ of policy cash value

withdraw


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