Life Insurance Exam

Maximum age - temp. protection Good for younger people No cash value or living benefits Also know as pure death protection Mostly renewable and convertible

Enewable allows insured to renew policy without evidence of insurabilty. Convertible allowsw insured to convert policy without evidence

Level - benefit remains the same Increasing - you need an increasing benefit Decreasing - you need a decreasing benefit usually to pay off mortage or other debts.

Annually renewable term insurance. Premium increases each renew term. It is the purest form of insurance.

It adds a death benefit equal to the amount paid in by the premiums. Can cost sometimes 25% to 50% more

It lasts until insured dies or reaches 100 when the policy is then paid out. Also builds a cash value or nonforfieture value to which the owner can borrow thus decreasing the benefit. Loans can be deferred by the insurer for 6 months

Straight whole life Limited-pay whole life Single premium whole life

-Lowest premium of whole life policies -also known as continous premium whole life

Designed to be paid up well before the age 100 the most common are lp-65 and limited pay 20

Best of both worlds - term and permanent insurance insured picks premium and the coverage needed extremely adjustable...surprise! can be in the form of term or whole/permenant policy increase in benefit will generally require proof of insurability. cash value develops when the premiums go beyond what is required to pay for the policy.

Flexible premium adjustable life

Insured can choose to pay two types of premiums: minimum or target two components: insurance and case account insurance acts as ART policies partial surrender capabilities usually within limits

Option a - level death benefit. Death benefit remains the same while the cash value increases option b - The death benefit increases in respect to the cash value increasing

It is very similar. the main difference is that the account is held in a seperate account instead of a general account. This allows the insurer and insured to use bond accounts, growth stock accounts, money market accounts, real estate accounts, and a balanced fund account requires secuirties license as well as insurance license. The death benefit and the cash value are not guaranteed and are based on the underlying investments in the sub-account. used to hedge against inflation the p

It is combination of universal and variable life. like universal provides flexible premiums and an adjustable death benefit The policy owner instead of the insurer decides where to invest the net premiums cash value nad death benefit increase/decrease depending on preformance of the sub account