Term
| 2 forms of universal life insurance |
|
Definition
|
|
Term
| pays a level death benefit during the early years |
|
Definition
|
|
Term
| with option A, as the cash value increases over time, the net amount of risk |
|
Definition
|
|
Term
| with option A, what increases during the later years of the policy? |
|
Definition
|
|
Term
| w/ option A, if death benefits did not increase, the policy would not meet what that is required by the internet revenue code? |
|
Definition
|
|
Term
| if the option A policy does not meet the corridor test, the policy would not receive favorable |
|
Definition
|
|
Term
| is a complex test that disqualifies a policy for favorable income-tax treatment if the cash values are excessive relative to the net amount of risk |
|
Definition
|
|
Term
| provides for an increasing death benefit |
|
Definition
|
|
Term
| in option b, the death benefit is equal to a constant net amount of risk plus |
|
Definition
| the accumulated cash value |
|
|
Term
| in option b, if the cash value increases over time, the death benefit will |
|
Definition
|
|
Term
| an increasing death benefit each year is not guaranteed in |
|
Definition
|
|
Term
| compared to traditional whole life products, universal life insurance provides |
|
Definition
|
|
Term
| since the policy owner has the considerable flexibility in universal life insurance to determine the frequency and amount of premium payments, premiums can be discontinued if there is sufficient cash value to pay |
|
Definition
| mortality costs and expenses |
|
|
Term
| since there is considerable flexibility in universal policies, the death benefit can be |
|
Definition
|
|
Term
| evidence of insurability is required to increase the |
|
Definition
|
|
Term
| the advertised rates of return on universal policies are |
|
Definition
| misleading b/c they are gross rates and not net rates |
|
|
