Term
| State the 5 key elements to UNIVERSAL LIFE POLICY (this includes descriptions of Death Benefit, Cash Value, Premiums, Loans, and Risk Bearer) |
|
Definition
DB: May/may not be fixed
Prems: Flexible
CV: Not guaranteed - but is guaranteed minimum interest
Loans: Approx. 95% of cash val
Risk: P.O. bears interest rate risk over minimum; Insurer bears principal risk |
|
|
Term
| State the 5 key elements to VARIABLE UNIVERSAL LIFE POLICY (this includes descriptions of Death Benefit, Cash Value, Premiums, Loans, and Risk Bearer) |
|
Definition
DB: May/may not be fixed
CV: Not guaranteed
Prem: Flexible
Loans: 75-90% of cash val
Risk: P.O. |
|
|
Term
| State the 5 key elements to WHOLE LIFE (this includes descriptions of Death Benefit, Cash Value, Premiums, Loans, and Risk Bearer) |
|
Definition
DB: FIxed
CV: guaranteed
Prems: Fixed
Loans: Borrow up to the guaranteed rate of return
Risk: Insurer |
|
|
Term
| State the 5 key elements to Variable Life (this includes descriptions of Death Benefit, Cash Value, Premiums, Loans, and Risk Bearer) |
|
Definition
DB: Fixed minimum
CV: Not guaranteed
Prems: Fixed
Loans: 75-90% of CV
Risk: P.O. |
|
|
Term
| What types of policies require a securities license to solicit? |
|
Definition
Variable
(Namely variable life and variable universal life) |
|
|
Term
| Which type of policy would Waiver of Payor of Premium be most applicable? |
|
Definition
|
|
Term
| A viatical trust agreement is used in what situation, and who is expecting to benefit from it? |
|
Definition
| Used when the insured becomes terminally ill, or has been terminally ill and is buying a new policy, and is expected to die within 2 years. The people expecting to benefit would be the purchasers of the insured's policy, so that the insured may receive the policy at a lower rate. |
|
|
