Term
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Definition
| When a lienholder is given full control of a policy for debt purposes. The owner still gets control of monies above and beyond the debt. |
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Term
LI:
Adjustable Life Insurance |
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Definition
| Combo of Term and Whole Life; Premiums can be adjusted for current needs. |
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Term
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Definition
| Permanent level insurance for the 'whole life"-from issuance to death. LEVEL premiums, benefits and cash values. |
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Term
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Definition
For limited term or time. Expires w/o value after the term, designed for people who have kids when younger.
AKA Temporary; NO cash value. |
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Term
LI:
3 Categories:
1. Ordinary life-private, individual policies
2. Industrial- AKA Burial Ins, small amts, 1%
3. Group-Employee/Employer; one contract for a large group |
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Definition
3 Categories:
1. Ordinary life-private, individual policies
2. Industrial- AKA Burial Ins, small amts, 1%
3. Group-Employee/Employer; one contract for a large group |
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Term
LI:
Level Term
Decreasing Tem
Increasing Tem
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Definition
Level-level for life of the ins.
Decreasing-decreases, usually used for debts such as a mortgage
Increasing-Will increase. AKA COLA Cost of Living Adjustment. Can be sold separately or as a rider. |
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Term
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Definition
| Allows policy holder to convert term to whole w/o proof of insurability. |
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Term
LI:
Straight Whole Life
Limited Pay Whole Life
Single Premium |
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Definition
Straight Whole Life-same premium to 100 or death
Limited Pay Whole Life-paid up in certain number of years, then guaranteed
Single Premium-one premium, then guaranteed |
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Term
LI:
Modified Whole
Graded Premium
Indexed |
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Definition
Modified and Graded-premiums are lower for first few years, then grow. For young people who will make more money in time
Indexed is based on the CPI |
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Term
LI:
Endowment Policies
Endowment means matures
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Definition
| Provide a death payment if PH dies in endowment period (like term) and a living payment if alive after the policy endows/matures. Endowments are like accelerated maturity whole life where the endowment may be 65 instead of 100. |
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