Term Insurance
designed to provide life insurance protection for a limited period of time; the face amount of the policy is payable only if the insured dies during the time specified in the policy
Continuous Premium Whole Life
most common type of whole life insurance; stretch premium payments over the whole life of the insured up to age 100
Limited Payment Whole Life
allow the policyholder to pay for the entire policy in a shorter period of time; can be broken down into any desired number of installments
Indeterminate Premium Whole Life
nonparticipating contracts that were developed to compete with participating polices; a maximum premium and discounts that may reduce the premium
Current Assumption Whole Life
offers flexible premium payments that are tied into current interest rate fluctuations
Adjustable Life Insurance
a policy that offers the insured the option to adjust the policy's face amount, premium, and length of protection without ever having to complete a new application or have another policy issued
Universal Life Insurance
a flexible premium, adjustable benefit life insurance contract that accumulates cash value
Variable Life Insurance
a whole life policy designed to protect the policyholder and the beneficiaries from the erosion of their life insurance dollars due to inflation
Industrial Life Insurance
written for a small face amount (usually $2,000 or less) and the premiums are payable as frequently as weekly; very expensive
Credit Life Insurance
provides that in an event of death of an insured debtor, the outstanding balance is usually paid off in full
Renewable Term Insurance
one that may be renewed at the end of the specified period of time for another term period; the renewable feature must be written into the original policy at the time of purchase
Convertible Term Insurance
allows the policyholder to exchange the temporary protection for permanent protection without evidence of insurability; usually used to convert term insurance into whole life insurance
Reentry Term
gives the insured the opportunity to provide evidence of insurability at the end of the term in order to qualify to renew the policy at a lower premium rate
Level Term Insurance
provides a level death benefit and level premium during the policy term; remains constant
Increasing Term Insurance
the death benefit increases over the life of the policy, and the premium remains level
Decreasing Term Insurance
temporary protection for a specified period of time; face amount decreases throughout the life of the policy down to 0 at the date of expiration
Level Premiums
the premiums for most permanent insurance policies are designed to remain level during the entire policy period
Face Amount
the amount of money listed on the first page of the policy; will be paid in the event of the insured's death
Cash Values
as the policyowner continues to pay the premiums, the cash value in the policy accumulates year by year; may be used for collateral on a loan, or withdraw
Policy Loan
cash value can be loaned to the policyowner, but it does not have to be repaid unless the policy owner elects to repay it; it is subject to interest
Retirement Income Policy
accumulates a sum of money for retirement while providing a death benefit; upon retirement policy pays an income; expensive
Accelerated Benefits
living benefits; allows policyholders who are terminally ill to collect all or part of their death benefit while they are still alive