Term
| life insurance policies can be classified as either |
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Definition
| term insurance or cash-value life insurance |
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Term
| provides temporary protection |
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Definition
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Term
| has a savings component and builds cash value |
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Definition
| cash-value life insurance |
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Term
| the period of protection is temporary, such as 1, 5, 10, 20, or 30 years - unless the policy is renewed, the protection expires at the end of the period |
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Definition
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Term
| most term insurance policies are |
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Definition
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Term
| means that the policy can be renewed for additional periods without evidence of insurability |
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Definition
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Term
| in term insurance when is the premium increased? and what is it based on? |
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Definition
| at each renewal date and the insured's attained age |
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Term
| purpose is to protect the insurability of the insured |
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Definition
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Term
| what does the renewal provision in term insurance result in against the insurer? |
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Definition
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Term
| since premiums increase with age in term life insurance, most insureds in good health tend to |
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Definition
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Term
| since premiums increase with age in term life insurance, most insured who are in poor health tend to |
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Definition
| continue to renew, regardless of the premium price |
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Term
| to minimize adverse selection, what limitation do insurers put on term insurance? |
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Definition
| age limitation beyond which renewal is not allowed |
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Term
| most arm insurance policies are convertible, which means the term policy can be exchanged for a |
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Definition
| cash-value policy w/out evidence of insurability |
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Term
| two methods for converting term insurance |
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Definition
| attained-age method and original age method |
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Term
| the premium charged is based on the insured's attained age at the time of conversion |
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Definition
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Term
| the premium charged is based on the insured's original age when the term insurance was first purchased |
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Definition
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Term
| most insurers offering the original-age method require the conversion to take place within a certain time period from the |
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Definition
| issue date of the term policy |
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Term
| in what method of converting term insurance must the policy owner pay the difference between the premiums paid on the term policy and those that would have been paid on the new policy, with interest on the difference at a specified rate? |
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Definition
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Term
| the purpose of the financial adjustment in the original-age method is to place the insurer in the same financial position it would have achieved if the policy had been issued at |
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Definition
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Term
| why are few term policies converted based on the original-age method? |
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Definition
| b/c of the financial adjustment required |
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Term
| have no cash value or savings element |
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Definition
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Term
| although some long-term policies have a small reserve, it issued up by the contract expiration date in |
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Definition
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Term
| a term policy that is issued for a one year period, and the policy owner can renew for successive one-year periods to some stated age without evidence of insurability |
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Definition
| yearly renewable term insurance |
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Term
| in yearly renewable term insurance, when do premiums increase? |
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Definition
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Term
| most of which type of term insurance policies allow the policy owner to convert to a cash-value policy w/ no evidence of insurability? |
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Definition
| yearly renewable term insurance |
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Term
| a type of term insurance that provides protection to age 65, at which time the policy expires |
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Definition
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