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Details Title: Texas Life and Health Description: Life Types of Policies Total Flash Cards: 37 Created: 08/06/2004 15:01:19	To study from this set of flash cards, or to create your own your own study flash cards, register HERE. If you are already a registered user, CLICK HERE.
Cards Term Pure Death Protection;specified period Definition Term insurance offers _________________________ for a _______________________ as stated in the contract. Term expire; mature Definition With term insurance, if the insured does not die during the term specified in the policy, the policy will _________________. If the insured does die during the term, the policy will ______________________ Term Proof of Insurability Definition Renewable and Convertible Term policies allow the insured to exercise these features without having to show ____________________. Term increases;attained age; remains level Definition With annually renewable term the insured's premium _____________________each year for the duration of the contract based on his/her _____________________. With level premium term the insured's premium ______________________ each year for the duration of the contract. Term Death Benefit; beneficiary Definition The ___________ is not taxable to the ____________ of an insurance policy. Term level; increasing; decreasing Definition Term insurance's face amount can be ______, _________, or _____________. Term whole life Definition ______________________ is a form of life insurance that provides continuous coverage until death or age 100 as well as growth of cash value. Term guaranteed; taxable Definition As long as the Whole Life policy is in force, the growth of cash value is ____________ and not _______________. Term Policy Loans; face amount Definition __________________ against the cash value are allowable with Whole Life policies. Any amount outstanding plus interest are deducted from the __________________ Term single premium; limited pay; straight life Definition There are three types of Whole life policies: 1) __________, 2) _________, 3) _____________. Term Joint Life; survivorship life; average Definition _______________ and ___________________ are designed to insure two or more lives with a single policy. Premium is based on the ____________ age of the applicants. Term First Insured; Last Insured Definition Joint Life pays on the death of the __________ and Survivorship Life pays on the death of the ________________. Term current; guaranteed Definition Cash value in an Interest Sensitive Whole Life policy will grow either at a _________________________ interest rate or at a minimum ____________________ interest rate. Term modified life Definition A type of whole life charging a lower premium in the first three-five years and then a higher-level premium thereafter is called ___________________. Term graded premium whole life Definition A type of whole life charging a lower initial premium gradually increasing for a period of time, and then remaining level thereafter is called __________________. Term Adjustable whole life Definition ________________ is a policy in which the policyowner chooses two of three variables. Term Family Policy Definition The combination policy that incorporates Whole Life and Convertible term to insure every member of the family is called the ______________________. Term whole; decreasing term Definition A Family Income policy covers the life of the breadwinner and is structured with _____________________ and ________________________. Term Minimum Premium; targeted premium; skip Definition In Universal Life you can pay the _______________, the __________________,or even ______________ your premiums as long as there is enough cash value to pay your insurance cost and expenses. Term annually renewable term; tax deferred; current; guaranteed Definition Universal Life is comprised of two components, 1) _____________________, and 2) a cash account which accumulates on a _________________ basis. The cash account earns either the _______________ interest rate or the ________________ interest rate, whichever is higher. Term partial surrender/withdrawal Definition With Universal Life, you can access your cash value by simply doing a ________________________. Term Level (Option A); Increasing (Option B) Definition Universal Life offers one of two death benefit options to the policyowner: ________________ or____________________. Term Variable whole Definition ____________________ Life offers a minimum death benefit, fixed level premiums and a cash value that increases or decreases depending on market fluctuations. Term Policy Owner; Guaranteed Definition The cash value investment option of Variable Whole Life and Variable Universal Life are controlled by the ___________________ and are not ____________________. Term General; separate Definition Traditional Whole Life policies have their cash values held in the insurance company's ___________account. Variable Whole Life and Variable Universal Life have their cash values held in the insurance company's _________________account. Term Flexible Definition With Variable Universal Life, your premiums are _______________________. Term Insurance; securities Definition To market any variable product, you must possess both your __________________ and ________________ license. Term Endowment Definition The policy that focuses more on cash value growth and provides protection only during the accumulation period is the ____________________. Term Annuity Definition ______________ Contracts protect against the possibility of outliving one's income by liquidating an estate. Term Annuitant; beneficiary Definition The _______________ receives the payments of an annuity contract. If this person dies prior to annuitization, the ______________ receives the money. Term accumulation; annuitization Definition The two distinct periods of Annuity Contracts are the: _____________________ and the ___________________. Term Single; periodic Definition Either a _______________ or a _________________ payment may fund annuities. Term Immediately Annuity; Deferred annuity Definition An __________ is purchased with a single, lump sum and starts paying out within one year from the date of purchase. A __________ starts paying out after one year from the date of purchase. Term Fixed Annuity; general Definition An annuity that guarantees the interest rate is a ______________ and premium payments are invested in the insurance company's __________ account. Term variable annuity; separate Definition A ____________________ does not guarantee the interest rate and the premium payments are invested in the insurance company's _______________ account. Term accumulation units; annuity units Definition With Variable Annuities, the premium payments purchase _________________. Upon annuitization, these are converted to _________________ Term prospectus; suitability Definition With any variable product, you must present a ___________________ at the time of sale, and you must check for __________________________ of the product for the client.