Types of Life Insurance
Policies terms well
explained.
term insurance - Ans>>>insurance offering temporary protection, aka only
provides coverage for a specific period of time
AKA "pure life insurance'
offers the GREATEST amount of coverage for the LOWEST premium
cannot buy or renew after a certain age
pure death protection - Ans>>>protection offered through term insurance
-> death benefit paid to beneficiary
, -> if it's canceled or expired, nothing is payable at end of term
-> there is no cash value or other living benefits
whole life - Ans>>>insurance that provides LIFETIME PROTECTION and includes a
savings element (CASH VALUE) until age 100
key elements:
->premiums are higher for this type of insurance than for term insurance
->level premium based on the age at issuance
->death benefit is guaranteed and remains level for life
->living benefits include borrowing cash against the policy
indexed whole life - Ans>>>insurance where the cash value is dependent on the
performance of the equity index, although there is a guaranteed minimum
interest rate
universal life - Ans>>>AKA flexible premium adjustable life
insurance where the policyowner has the flexibility to increase the amount of
premium paid into the policy and to later decrease it again
the policyowner can even skip premium payments without it lapsing AS LONG AS
there is sufficient cash value at the time to cover the monthly deductions for cost
of insurance
option A - Ans>>>option indicating LEVEL death benefit
Policies terms well
explained.
term insurance - Ans>>>insurance offering temporary protection, aka only
provides coverage for a specific period of time
AKA "pure life insurance'
offers the GREATEST amount of coverage for the LOWEST premium
cannot buy or renew after a certain age
pure death protection - Ans>>>protection offered through term insurance
-> death benefit paid to beneficiary
, -> if it's canceled or expired, nothing is payable at end of term
-> there is no cash value or other living benefits
whole life - Ans>>>insurance that provides LIFETIME PROTECTION and includes a
savings element (CASH VALUE) until age 100
key elements:
->premiums are higher for this type of insurance than for term insurance
->level premium based on the age at issuance
->death benefit is guaranteed and remains level for life
->living benefits include borrowing cash against the policy
indexed whole life - Ans>>>insurance where the cash value is dependent on the
performance of the equity index, although there is a guaranteed minimum
interest rate
universal life - Ans>>>AKA flexible premium adjustable life
insurance where the policyowner has the flexibility to increase the amount of
premium paid into the policy and to later decrease it again
the policyowner can even skip premium payments without it lapsing AS LONG AS
there is sufficient cash value at the time to cover the monthly deductions for cost
of insurance
option A - Ans>>>option indicating LEVEL death benefit
