Life Insurance Overview

The premium is constant for a fixed time period.

To cover loans as the face amount declines each year.

<p>True</p> Signup and view all the answers

<p>No renewals after a certain age</p> Signup and view all the answers

<p>The option to exchange a term policy for a permanent policy.</p> Signup and view all the answers

<p>Group Term Life Insurance</p> Signup and view all the answers

<p>A savings/investment element along with life insurance protection.</p> Signup and view all the answers

<p>Premiums cease after a specified number of years</p> Signup and view all the answers

<p>To cover premiums if the policyholder is disabled.</p> Signup and view all the answers

<p>surrender charges</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>Adjust cash-value accumulation</p> Signup and view all the answers

<p>Universal Life Insurance, Variable Life Insurance, and Variable Universal Life Insurance.</p> Signup and view all the answers

<p>All factors that might potentially affect the level of need.</p> Signup and view all the answers

<p>A form of universal life insurance that gives the policyholder some choice in the investments made with the cash value accumulated by the policy.</p> Signup and view all the answers

<p>A life insurance policy that only pays when the second party dies.</p> Signup and view all the answers

<p>Becomes the beneficiary if the original beneficiary dies before the insured.</p> Signup and view all the answers

<p>If the insured commits suicide within 2 years of the policy date, only the premiums are returned.</p> Signup and view all the answers

<p>After 2 years have passed since the policy's issuance date, claims cannot be denied for errors or misstatements.</p> Signup and view all the answers

<p>Provides for the doubling or tripling of the face amount if death results from certain specified causes.</p> Signup and view all the answers

<p>Transfers of ownership.</p> Signup and view all the answers

<p>The transfer of all ownership rights of a life insurance policy to another individual or entity.</p> Signup and view all the answers

<p>Designation of a policy's death benefit or its cash-surrender value to a creditor as security for a loan.</p> Signup and view all the answers

<p>A calculation method that does not take into account the time value of money.</p> Signup and view all the answers

<p>The cost of life insurance, taking into account the interest that would have been earned had the premiums been invested.</p> Signup and view all the answers

<p>Premiums paid minus interest/dividends accrued but unpaid plus the Accumulated cash value.</p> Signup and view all the answers

<p>You retain all of the rights and privileges granted by the policy.</p> Signup and view all the answers

<p>The person or organization named in the life insurance policy that will receive the payment in the event of the insured's death.</p> Signup and view all the answers

<p>One that has been terminated because of non-payment of premiums.</p> Signup and view all the answers

<p>You usually have 31 days after a premium due date to avoid having the policy lapse.</p> Signup and view all the answers

<p>An insurance policy where the company promises to pay a lump sum upon death.</p> Signup and view all the answers

<p>To protect someone who depends on you from financial loss related to your death.</p> Signup and view all the answers

<p>Odds on dying, based on age and sex.</p> Signup and view all the answers

<p>70% of salary for 7 years.</p> Signup and view all the answers

<p>Half of debts plus funeral expenses.</p> Signup and view all the answers

<p>Multiply the number of years until the youngest child reaches 18 by $10,000.</p> Signup and view all the answers

<p>A thorough method that considers employer-provided insurance, Social Security benefits, and income/assets.</p> Signup and view all the answers

<p>An insurance company that issues common stock.</p> Signup and view all the answers

<p>An insurance company owned by policyholders.</p> Signup and view all the answers

<p>Part of the premium refunded to policyholders annually.</p> Signup and view all the answers

<p>The least expensive kind of insurance that provides protection for a specified period.</p> Signup and view all the answers

<p>The option to renew the policy without having a physical examination at the end of the term.</p> Signup and view all the answers

<p>The most popular form of life insurance.</p> Signup and view all the answers

<p>The option to exchange a term policy for a whole life policy without a physical examination.</p> Signup and view all the answers

<p>Insurance where the premium stays the same, but the coverage decreases over time.</p> Signup and view all the answers

<p>A policy that refunds every penny of premiums if one outlives the defined term.</p> Signup and view all the answers

<p>A traditional kind of insurance that pays premiums for life and accumulates cash value.</p> Signup and view all the answers

<p>A policy that pays premiums for 20-30 years and then becomes paid up.</p> Signup and view all the answers

<p>A policy with a minimum death benefit guaranteed, but can exceed that based on earnings.</p> Signup and view all the answers

<p>A whole life insurance policy that allows changes in premium payments to increase or decrease coverage.</p> Signup and view all the answers

<p>A policy that allows more direct control of premiums, which can be paid at any time in almost any amount.</p> Signup and view all the answers

<p>Term insurance often provided by employers without requiring a physical examination.</p> Signup and view all the answers

<p>Insurance that provides coverage from the beginning of the contract to maturity.</p> Signup and view all the answers

<p>Insurance that pays off debts like car loans if you die.</p> Signup and view all the answers

<p>Keep accrued benefits if you drop the policy.</p> Signup and view all the answers

<p>It states that after the policy has been active for 2 years, its validity cannot be disputed.</p> Signup and view all the answers

<p>If the holder commits suicide within the first 2 years, the family only receives a refund of the premium.</p> Signup and view all the answers

<p>The family receives double indemnity (payout).</p> Signup and view all the answers

<p>A loan that uses accumulated cash value to pay the premium if you don't pay during the grace period.</p> Signup and view all the answers