Types of Life Insurance Policies Questions and Answers 100% Verified

adjustable life - insurance intended to combine best of term & permanent coverage insurance insured determines how much coverage is needed and the affordable amount of premium. the insurer then determines the appropriate type of insurance to meet he insured's needs policyowner can make adjustments to policy as needs change annually renewable term - the purest form of term insurance death benefit remains level and the policy may be guaranteed to be renewable each year without proof of insurability, but the premium increases annually according to the attained age convertible - provision that provides the policy owner with the right to convert the policy to the permanent insurance policy WITHOUT evidence of insurability credit insurance - special type of insurance coverage written to insure the life of the debtor and pay off the balance of a loan in the event of the death of the debtor creditor is the OWNER and the BENEFICIARY of the policy decreasing term - policy that features a level premium and a death benefit that decreases each year over the duration of the policy term used when the amount of protection is time sensitive or decreases over time (i.e. mortgage debt or other debts) family term rider - spouse term + family term = _____ ______ riderfixed - A man wants to buy a life insurance policy in which he can count on receiving the same benefits as stated in the contract. What type should he buy? increasing term - policy with level premiums and a death benefit that increases each year over the duration of the policy term ideal to handle inflation and the increasing cost of living often added to another policy as a rider indexed universal life - universal life policy with an equity index as its investment feature the CASH VALUE is dependent upon the performance of the equity index indexed whole life - insurance where the cash value is dependent on the performance of the equity index, although there is a guaranteed minimum interest rate