Term
| How is a term insurance policy best described |
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Definition
| A death benefit is payable, but there is no cash value. This is a description of Term insurance |
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Term
| What is true about Term insurance |
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Definition
| It contains no cash value, it is helpful for temporary insurance needs and it pays the death benefit if the insured dies within the protection period. These are the characteristics of term insurance |
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Term
| If a term policy contains a "convertible" clause in it, it allows the policy holder to convert to permanent insurance from temporary insurance with: |
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Definition
evidence of insurability. Of the term insurance offered.
The purpose in purchasing a convertible policy is so that it can be converted without evidence of insurability at the same rate classification as the term policy |
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Term
| Assuming all of the following ould have an equivalent face amount, which would have the lowest premium in the first year if the insured were 22 years old? |
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Definition
| 5-yr term insruance. Of the term insurance offered, the one with the shortest premium paying period would be the lowest cost |
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Term
| Which category of insurance combine insurance protection together with cash accumulation? |
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Definition
| Permanent insurance contracts. Permanent insurance builds cash value. |
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Term
| Which type of payment do "whole life" policies NOT require |
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Definition
| a single premium payment. It is not practical because most of hte premiums would be very alrge and very few people could afford to purchase insurance |
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Term
| What are some true facts about a non-participating whole life policy. |
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Definition
| Endowws at age 100, is paid up at a certain time, will have higher premiums that term insurance. This is the characteristics of whole life. |
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Term
| What insurance type will pay the face amount when the insured reaches 100 and combines nonforfeiture vaues with protection |
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Definition
| whole life insurance. This is a characteristic of whole life. |
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Term
| T/F Teh premiums charged for whole life inssurance do not increase over time. Thus, they are called "level" premiums |
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Definition
| True. The reason whole life was invented was to allow the premiums to remain level over the life of the policy. |
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Term
| How are limited payment whole life policies different from ordinary whole life policies? |
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Definition
| Limited payment policies will have a shortened premium payment period |
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Term
| The type of life insurance policy which will pay the face amount to a beneficiary if the insured dies during the policy's term, or will pay the face amount to the insured who is living at the end of this period of time is a/an |
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Definition
| endowment policy. This is the definition of an endowment policy. |
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Term
| Family income policies combine two types of insurance together to form a contract often used for all famiy members. What two types are used. |
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Definition
| Whole life and term.The types of insurance that make up a family income policy must be memorized |
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Term
| When children are covered under a family life insurane poliy: |
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Definition
| eidence of insurability is not required if conversion is made to permanent insurance for those children. This is one of the characteristics of the child covered under a family insurance plan. |
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Term
| Which items can be associated with adjustments made to universal life insurance cash values |
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Definition
| interest is credited and termed "current" and premium is charged These are 2 of the characteristics of a Universal life policy. |
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Term
| How are premium payments on universal life insurance determined. |
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Definition
| A premium payment may or may not be required each year depending on the performance of the policy. |
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Term
| It is true about variable life insurace that it is subject to state insurance regulations and federal securities regulations; the policyholder can choose, based on company options, when the cash value is invested and it can be structured as either a whole lifeor a universal policy. It is NOT true that: |
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Definition
| the insurance company assumes the investment risk.The insurance comapny assumes none of the investment risk |
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Term
| T/F Credit life can ONLY be written as individual plans, not as group plans |
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Definition
| False.Credit life can be written as individual or group plans |
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Term
| How would you describe a rider |
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Definition
| It is an endorsement to a life contract providing supplemental benefits and it can be a supplemental term policy added to a whole life policy. Another word for endorsement is rider. Riders can provide additional benefits or limit an insurance company's liability |
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Term
| T/F adding an accidential death benefit to a cash value policy will increase the premium, and this premium does NOT add to the policy's cash value |
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Definition
| True. Supplemental benefits add nothing to the cash value of a policy. |
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Term
| When using the guaranteed insurability rider on a contract, an agent can state that the policyowner is allowed to purchase more insurance when: |
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Definition
| on their own life, on certain dates or ages, without insurability requirements. An insured always has an insurable interest in their own life. This rider is insurance to guarantee taht the insured can buy more insurance without evidence of insurability. |
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