Podcast
Questions and Answers
What whole life product has lower premiums for the first 3 to 5 years of the contract, with a one-time premium increase?
What whole life product has lower premiums for the first 3 to 5 years of the contract, with a one-time premium increase?
- Variable Universal Life
- Indexed Life Insurance policy
- Modified premium whole life (correct)
- Graded premium whole life
A jumping juvenile policy has a death benefit that increases to ______ times its stated value with no premium increase.
A jumping juvenile policy has a death benefit that increases to ______ times its stated value with no premium increase.
5
Generally, credit insurance uses ______ term.
Generally, credit insurance uses ______ term.
decreasing
Name the ability to change from a term policy to a whole life policy without providing evidence of insurability.
Name the ability to change from a term policy to a whole life policy without providing evidence of insurability.
What whole life product has lower premiums that increase each year for the first 3 to 5 years of the policy?
What whole life product has lower premiums that increase each year for the first 3 to 5 years of the policy?
What policy combines variable life with flexible premiums?
What policy combines variable life with flexible premiums?
Which life policy has cash value gains that mirror or are tied to a stock market index, such as the S&P 500?
Which life policy has cash value gains that mirror or are tied to a stock market index, such as the S&P 500?
What life insurance policy pays a benefit at the earlier of death or the end of a specified period?
What life insurance policy pays a benefit at the earlier of death or the end of a specified period?
A universal life policy allows for partial withdrawals of the cash value.
A universal life policy allows for partial withdrawals of the cash value.
What type of insurance policy is most often used as a mortgage redemption policy?
What type of insurance policy is most often used as a mortgage redemption policy?
What is another name for interest-sensitive whole life insurance?
What is another name for interest-sensitive whole life insurance?
Regardless of cash value performance, VL policies have a guaranteed minimum death benefit.
Regardless of cash value performance, VL policies have a guaranteed minimum death benefit.
What is single-pay whole life?
What is single-pay whole life?
What nontraditional life insurance policy has a flexible death benefit and a rate of return that is interest-sensitive?
What nontraditional life insurance policy has a flexible death benefit and a rate of return that is interest-sensitive?
The cash value of a single premium whole life policy will equal the death benefit at age ______.
The cash value of a single premium whole life policy will equal the death benefit at age ______.
A 10-year level term policy provides coverage for ______ years.
A 10-year level term policy provides coverage for ______ years.
A 5-year level term policy will renew every 5 years subject to _______.
A 5-year level term policy will renew every 5 years subject to _______.
What are the two UL death benefit options?
What are the two UL death benefit options?
For how long will the premium on a 20-year level term policy remain level?
For how long will the premium on a 20-year level term policy remain level?
Straight life has a ______ and ______ premium.
Straight life has a ______ and ______ premium.
What two licenses are required to sell variable products?
What two licenses are required to sell variable products?
What is cash value?
What is cash value?
What is attained or actual age conversion?
What is attained or actual age conversion?
Cash value increases with every ______ payment after the ______ year.
Cash value increases with every ______ payment after the ______ year.
Describe an Equity Index Life policy.
Describe an Equity Index Life policy.
The death benefit and premium in a whole life contract are ______ throughout the owner's lifetime.
The death benefit and premium in a whole life contract are ______ throughout the owner's lifetime.
Describe an Adjustable Life policy.
Describe an Adjustable Life policy.
Cash value generally begins to build within a whole life policy sometime in the ______ year.
Cash value generally begins to build within a whole life policy sometime in the ______ year.
______ Life Insurance is purchased to protect a borrower if a lender dies and cannot repay a loan.
______ Life Insurance is purchased to protect a borrower if a lender dies and cannot repay a loan.
The cash value of a whole life policy grows at a minimum interest rate of ______% to ______%.
The cash value of a whole life policy grows at a minimum interest rate of ______% to ______%.
A WL death benefit and premium both remain _______ for the life of the policy.
A WL death benefit and premium both remain _______ for the life of the policy.
The death benefit of a term policy is payable only if death occurs during the ______ period.
The death benefit of a term policy is payable only if death occurs during the ______ period.
Describe an endowment.
Describe an endowment.
What is another name for a Second or Last to Die policy?
What is another name for a Second or Last to Die policy?
Term insurance builds cash value.
Term insurance builds cash value.
What is the renewability feature?
What is the renewability feature?
As a client ages, what happens to her premium payments in a variable life policy?
As a client ages, what happens to her premium payments in a variable life policy?
Whole life premiums remain ______ for the life of the policy.
Whole life premiums remain ______ for the life of the policy.
A 20-year endowment will mature at the end of ______ years.
A 20-year endowment will mature at the end of ______ years.
What policy combines whole life insurance and a decreasing term rider providing coverage on the breadwinner?
What policy combines whole life insurance and a decreasing term rider providing coverage on the breadwinner?
A jumping juvenile policy may also be called ______.
A jumping juvenile policy may also be called ______.
Which whole life payment option would have the highest annual premium - 10, 20, or 30 pay?
Which whole life payment option would have the highest annual premium - 10, 20, or 30 pay?
At what age is a whole life policy's cash value assumed to equal its death benefit?
At what age is a whole life policy's cash value assumed to equal its death benefit?
What are loan option and cash surrender?
What are loan option and cash surrender?
What type of policy protects the bank in the event a borrower dies?
What type of policy protects the bank in the event a borrower dies?
A VL policy has a ______ premium and a cash value that is ______.
A VL policy has a ______ premium and a cash value that is ______.
What age is used to determine level term policy renewals?
What age is used to determine level term policy renewals?
______ pay a living benefit at end of a set timeframe or a death benefit should death occur during that timeframe.
______ pay a living benefit at end of a set timeframe or a death benefit should death occur during that timeframe.
Study Notes
Life Insurance Policies Overview
- Modified Premium Whole Life: Lower premiums for initial 3 to 5 years, followed by a one-time premium increase.
- Jumping Juvenile Policy: Offers a death benefit that increases to 5 times the stated value without additional premium.
- Credit Insurance: Typically uses decreasing term insurance to match declining debt obligations.
- Convertibility: Allows policyholders to convert a term policy into a whole life policy without proving insurability.
- Graded Premium Whole Life: Features lower starting premiums that increase annually over the first 3 to 5 years.
Types of Life Insurance Policies
- Variable Universal Life: Combines features of variable life insurance with flexible premium payments.
- Indexed Life Insurance: Cash value tied to a stock market index, like the S&P 500, providing growth tied to market performance.
- Endowment Policy: Pays out either on death or at the end of a specified term, designed for accumulation of savings.
- Credit Life Insurance: Protects borrowers by ensuring loan repayment in the event of the lender's death.
- Survivorship Life: Also known as Second or Last to Die policy, it insures two lives and pays out after both have passed away.
Policy Features and Terms
- Cash Value: Accumulates within permanent life insurance policies, representing the policy's equity.
- Premium Payments: In whole life policies, premiums remain level throughout the life of the policy.
- Death Benefit: In term life insurance, benefits are payable only if death occurs within the term coverage period.
- Renewability: Allows renewal of term life policies without providing proof of insurability, usually comes with age limitations.
- Loan Options: Policy owners can access cash value through loans or surrender options.
Special Policy Characteristics
- Equity Index Life Policy: Typically a universal life policy with cash value linked to an equity index, offering guaranteed returns.
- Single Premium Whole Life: Involves a one-time premium for lifetime coverage, with cash value equaling death benefit at age 100.
- Adjustable Life Policy: Offers flexibility in adjusting death benefits based on changing personal needs.
- Family Income Policy: Combines whole life insurance with a decreasing term rider, providing coverage for the breadwinner.
Important Age and Timeframes
- Whole Life Cash Value: Begins to build around the third year of the policy.
- 20-Year Endowment Maturity: This policy matures at the conclusion of 20 years.
- Level Term Policy: Coverage duration is strictly defined, such as a 10 or 5-year level term policy.
True/False Aspects in Policies
- Universal Life Policy: Allows partial withdrawals from cash value, and true for having minimum guaranteed death benefits.
- Term Insurance: False that it builds cash value, as it is strictly risk protection during the term.
Premium Variations and License Requirements
- Variable Life Policies: Have level premiums but fluctuate in cash value based on underlying investments.
- Licensing for Variable Products: Requires both a life insurance license and a FINRA license for eligibility in sales.
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Description
Test your knowledge on life insurance policies with these flashcards. Learn about various terms and definitions, including modified premium whole life and jumping juvenile policies. Perfect for students or professionals looking to refresh their understanding of life insurance.
