Graded-Premium Whole Life
premiums are typically lower initially, but gradually increase for a period of 5 to 10 years. After the period of increase the premiums will be level thereafter
Group Life Plan Conversion
if the master contract is terminated, every individual who has been on the plan for at lease 5 years will be allowed to convert to individual insurance of the same coverage. The employee usually has 31 days after terminating from the group in order to exe
Universal Life Insurance Policy
flexible premium, two types of interest rates- guaranteed and current. The insurer credits the cash value in the policy with a current (non guaranteed) interest rate and backs the cash value with a contract (lower guaranteed) rate of interest. The death p
Endowment at Age 65
has the characteristics of a whole life policy, except that the maturity date is prior to age 100
Group Life Insurance
premiums are determined by the age, sex and occupation of the entire group. Can be converted to an individual whole life, not term. participants receive a certificate of insurance. To purchase, the group must be formed for a reason other than purchasing i
Jumping Juvenile Policy
provide a low face amount in the early years and then increase, usually by 5 times the amount, when the insured reaches an age specified in the policy (usually 21), the policy increases significantly in the face amount when the insured reaches a specified
Adjustable Life Policy
the death benefit can be increased by providing evidence of insurability, allow for increases or decreases in the face amount or premium
Modified Life Policy
charges a lower premium for the first few policy years (3 to 5) and then a higher level premium for the remainder of the life of the policy. These policies were developed to make the purchase of whole life insurance more attractive for individuals who hav
Single Premium Whole Life
requires the entire premium to be paid in one lump sum at the policy's inception
Level Premium Term Policy
if the policy renews at the end of the term, the premium will be based on the insured's attained age at the time of the renewal. Term policies do not develop cash values
Convertible Term Insurance
is convertible without proof on insurability up to the full term death benefit. However, upon conversion, the premium for the permanent policy will be based on the insured's attained age. Upon conversion, the death benefit of the permanent policy will be
Limited-Pay Life Policy
life paid up at age 65, The policy endows when the insured turns 100. It is the premium paying period that is limited, not the maturity
Largest annual premium to smallest annual premium
20 year endowment, 20 pay life, 20 year level term, 20 year decreasing term
Annually Renewable Term
Purest form of term insurance, provide a level death benefit for a premium that increases annually, death benefits remain level and as with any term policy there are no cash values, the least expensive first year premium
Universal Life Option B
death benefit gradually increases each year by the amount that the cash value increases
Straight Life Policy
charge a level annual premium throughout the insured's lifetime and provide a level, guaranteed death benefit. It has the lowest annual premium of the three types of whole life policies, the face value of the policy is paid to the insured at age 100, it u
Limited Pay Whole Life
premium payments will cease at age 65, but coverage will continue to death or age 100. "Your client wants both protection and savings from insurance, and is willing to pay premiums until retirement age
Decreasing Term Policy
premiums remain level with a decreasing term policy, only the face amount decreases, it has a lower premium than level term, the contract pays only in the event of death during the term and there is no cash value, the face amount steadily declines through
Credit Life Insurance
the creditor is the policy owner and the beneficiary, the debtor is the insured. Amount of insurance permissible is limited per borrower, premiums are usually paid by the borrower, benefits are paid to the creditor
Survivorship Life Policy
second-to-die", pays on the last death rather than upon the first death
Variable Life Policy
flexible premium, cash value of a variable life policy is not guaranteed and fluctuates with the performance of the portfolio in which the premiums have been invested by the insurer. Variable products are governed in part by the Securities and Exchange Co
Joint Life Policy
the death benefit is paid upon the first death only, covers the lives of two insureds
Single Premium Whole Life (SPWL)
generates immediate cash value. endows for the face amount of the policy if the insured lives until the age of 100.
Universal Life Option A
(Level Death Benefit) the death benefit remains level while the cash value gradually increases. must maintain a specified "corridor" or gap between the cash value and the death benefit, as required by the IRS.
Graded Premium Whole Life
premiums are lower during the preliminary period and then increase each year until leveling off after the preliminary period
Juvenile Life Insurance
is classifies insures the life of a minor
Decreasing Term
the face amount decreases, the premium remains constant throughout the life of the contract
Level Term
the premium remains level for the term of the policy, if the policy renews at the end of the term, the premium will be based on the insured's age attained age at the time of the renewal, a 20 year term policy is written to provide a level death benefit fo
Increasing Term
the premium remains level for the term of the policy
Endowment Policy
higher premium, faster growth of the cash value, has the characteristics of a whole life policy, except the maturity date is prior to age 100
Level" in level term insurance
face amount", maintain a level death benefit (or face amount) throughout the term of the policy
Group Insurance termination
coverage continues for 31 days under the conversion privilege
Paid Up Addition Option
uses the dividend to purchase a smaller amount of the same type of insurance as the original policy
Types of Assignments
absolute and collateral
Grace Period
extends the premium due date
Reduction of Premium
allows the policy holder to apply policy dividends toward the next year's premium
Absolute Assignment
is the transfer or all ownership rights in a policy
Fixed Period Settlement Option
purpose is to provide a guaranteed income for a certain period of time
Incontestability Clause
life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time
Spendthrift Provision
when a life insurance policy stipulates that the beneficiary will receive payments in specified installment or for a specified number of years, this provision prevents the beneficiary from changing or borrowing from the planned installments
Per Capita
by the head
Absolute Assignment
...
20 Pay Whole Life
in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid for 20 years or until death, whichever occurs first
Universal Life
type of policy that allows the policy owner the ability to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount
Increasing Term Insurance
death benefit increases in the increasing term insurance
Endowment
your customer doesn't mind paying a higher premium as long as he gets a life insurance product that would allow for a faster growth of cash
Performance of the policy portfolio
the cash value of a variable life policy is not guaranteed and fluctuates with the performance of the portfolio in which premiums have been invested by the insurer
Variable Products
the minimum death benefit is guaranteed, the cash value is not guaranteed, the policy owners bear the investment risk
Straight Life Policies
would be classified as a traditional level premium contract.
Adjustable Life
the owner has the following privileges: increasing or decreasing the premium, changing the premium paying period, increasing or decreasing the face amount of coverage, or changing the period of protection
Annually Renewable Term Policies
death protection for Universal Life: provide a level death benefit for a premium that increases each year with the age of the insured. Purest form of term insurance.
Credit Insurance
usually written as decreasing term insurance, the initial amount of credit life insurance may not exceed the total amount repayable under the contract of indebtedness
Universal Life Insurance two types of interest rates
guaranteed and current
Conversion from group to individual
if a person has a life insurance policy under a group plan and then leaves the group, he may convert group coverage to individual coverage within 31 days of leaving the group without proof of insurability
Modified Life Policies
charge lower premiums during the first policy years, usually the first 3 to 5, and then higher level premiums for the remainder of the insured's life. The higher subsequent premiums are typically higher than straight life premiums would be for the same ag