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Term | Definition |
---|---|
under a 20-pay whole life policy, in order for the policy to pay the premium must be paid for what time period | for 20 years or until the insured's death whichever occurs first |
an insured owns a life policy. to be able to pay some of her medical bills, she withdraws a portion of the policies cash value. There is a limit for a withdrawal and the insurer charges a fee. what type of policy does she have | Universal Life |
Which type of policy generates immediate cash value | Single premium whole life |
What product provides income for a specified period of years or for life, and protects a person from outliving thier money | an annuity |
A married couple owns a permanent policy that covers both of thier life and pays the death benefit only upon the death of the first insured. What is this policy | joint life policy, when the first death occurs the policy ends |
Equity indexed annuities | have guaranteed minimum interest rates, they are aggresive, |
what characteristics make whole life permanent protection | coverage until death or age 100 |
An insured purchased a 10 year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10 year term | may be renewed without evidence of insurability for another like term or may be converted to permanent insurance |
best describes annually renewable term life | it is low level term |
The policy owner of a universal life policy may skip paying the premium and the policy will not lapse as long as | As long as the policy contains sufficient cash value at the time to cover the cost of insurance for the premium period |
Type of policy that can be changed from one that does not accumulate cash value to one that does is a | Convertable term policy |
When would a 20-pay whole life policy endow? | when the insured reaches 100 |
Which policy component decreases in decreasing term insurance | face value |
variable whole life is based on what type of premium | level fixed |
the term fixed in a fixed annuity refers to what | amount and length of payments, guaranteed interest rate, and equal annuity payments |
An annuity purchased with multiple payments that begin income payments after one year from the moment of purchase is known as what | flexible premium differed annuity |
If the annuitant dies before the annuitization period starts, what will the beneficiary receive | either the amount paid into the annuity or the cash value whichever is greater |
with single premium differed annuity , when will the annuity payments become available | no sooner than 1 year after annuity purchase |
What annuity settlement options provide income payments to the annuitant for the duration of his life, and also guarantees payment for a specified number of years | Life income with period certain |
How soon can payments begin in an immediate annuity | no latter than 1 year from time of annuity purchase |
Under option B in a universal life policy, what happens to the death benefit | the death benefit increases each year by the amount of the cash value |
Can a business or a corporation be an annuitant | No, an annuitant must always be a natural person |
What does the term level mean in term level insurance | face amount |
Who bears the investment risk in an fixed annuity | the insurer |
what type of annuity credits its interest based upon an index such as S&P 500 | Equity indexed annuity |
Why are policy loans not available on term insurance | there is no cash value to borrow against |
Whose life expectancy is taken into consideration in an annuity contract | annuitant |
Who receives income payment from an annuity | annuitant |
What is the difference between a single and a flexible premium payment option in a differed annuity |