Term
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Definition
| Term Insurance products provide coverage for a specified period of time. The policy benefit is payable only if 1. The insured dies during that time and 2. the policy is in force when the insured dies. |
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Term
| If an insured lives until the end of the specified term, does the policyowner have the right to continue life insurance coverage? |
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Definition
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Term
| What is a Policy Anniversary Date? |
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Definition
| This is the Anniversary of the date on which coverage under the policy became effective. |
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Term
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Definition
| A Rider is an amendment to the policy that either expands or limits the benefits payable under the contract. They are commonly used to provide a supplementary benefit or to increase the death benefit provided by the policy. |
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Term
| What is the difference between a Level Term Life Insurance, a Decreasing Term and an Increasing Term? |
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Definition
| A level term provides a policy benefit that remains the same over the term of the policy. A Decreasing term begins at a set face amt. and decreases over the policy term and an Increasing term starts at one face amount and increases by some specified amt. or percentage over the policy term. |
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Term
| Name the three types of Decreasing Term Life Insurance Coverage and their differences? |
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Definition
1. Mortgage Insurance is one that decreases - generally equals the amount the borrower owes on the mortgage loan at the time of the death. The Institution providing the mortgage is not party to the Ins. contract.
2. Credit Life Insurance pays the balance due on a loan if the borrower dies before the loan is repaid. The benefit is paid directly to the creditor.
3. Family Income Coverage provides a stated monthly income benefit to the insured's surviving spouse until the end of the term specified when purchased. |
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Term
| How does a RENEWAL PROVISION and a CONVERTIBLE PRIVILEGE differ? |
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Definition
| A RENEWAL provision gives the policyowner the right, within specified limits, to renew with providing evidence of insurabilty. One year term policies and riders are usually renewable. CONVERTIBLE allows the policyowner to change or convert the term insurance policy to a cash value policy without providing evidence of the insured is an insurable risk.Convertibles are sometimes charged at a higher rate. Renewal premium rate is based on the insured's age when the coverage is converted. Cash value begin date goes back to the original term insurance policy. |
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Term
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Definition
| An individual who wants to ensure that his estate will be settled in accordance with his wishes will develop an estate plan which considers the amount of assets and debts that he is likely to have when he dies and how best to preserve those assets so that they can pass to his heirs as he desires. |
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Term
| When the proceeds of a life insurance policy are paid in a lump sum to a named beneficiary, is this taxable income? |
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Definition
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Term
| In a Business Continuation Insurance Plan, what is a Key Person? |
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Definition
| A key person is any person or employee whose continued participation in the business is necessary to the success of the business and whose death would cause the business a significant financial loss. If the key person dies, the benefit is paid to the business. |
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