Types of Life Insurance Policies/ Questions & Definitions.| 2025 LATEST
UPDATED
Pure Life Insurance - (answers)Term insurance is also known as?
Pure Death Protection - (answers)Term insurance provides this, and includes no cash value or
other living benefits
Level
Increasing
Decreasing - (answers)Three basic types of term coverage available? Based on how the death
benefit changes during policy of term
Annually Renewable Term - (answers)What is the purest form of term insurance?
Mortgage or other debts - (answers)Decreasing term insurance is most commonly used to insure
payment for?
Return of Premium (ROP) life insurance - (answers)This is an increasing term insurance policy
that payes an additional death benefit ot the beneficiary equal to the amount of the premiums
paid
Renewable - (answers)This provision gives the policyowner the right to renew coveratge at
expiration date without evidence of insurability
Convertible - (answers)This provision provides the policyowner with the right to convert the
policy to a permanent insurance policy without evidence of insurability
Permanent - (answers)This is a general term used to refer to various forms of life insurance that
build cash value and remain in effect for the entire life of the insured (or until age 100) most
common type is whole life
, Whole Life Insurance - (answers)This provides lifetime protection, and includes a savings
element (or cash value).
age 100 - (answers)At what age do life policies endow
Level Premium
Death benefit
Cash Value
Living Benefits - (answers)Four key characteristics of whole life insurance?
Straight whole life
limited-pay whole life
single premium whole life - (answers)Three basic forms of whole life insurance?
Straight life - (answers)of the three whole life forms,w hich has the lowest annual premium
Adjustable Life - (answers)This was developed in an effort to provide the policyowner with the
best of both worlds (term and permanent coverage)
Universal Life - (answers)This is known by the generic name, flexible premium adjustable life.
an annually renewable term insurance - (answers)The insurance component of a universal life
policy is always what?
Insurance
Cash account - (answers)two components of universal life policy?
Option A (LEVEL DB)
UPDATED
Pure Life Insurance - (answers)Term insurance is also known as?
Pure Death Protection - (answers)Term insurance provides this, and includes no cash value or
other living benefits
Level
Increasing
Decreasing - (answers)Three basic types of term coverage available? Based on how the death
benefit changes during policy of term
Annually Renewable Term - (answers)What is the purest form of term insurance?
Mortgage or other debts - (answers)Decreasing term insurance is most commonly used to insure
payment for?
Return of Premium (ROP) life insurance - (answers)This is an increasing term insurance policy
that payes an additional death benefit ot the beneficiary equal to the amount of the premiums
paid
Renewable - (answers)This provision gives the policyowner the right to renew coveratge at
expiration date without evidence of insurability
Convertible - (answers)This provision provides the policyowner with the right to convert the
policy to a permanent insurance policy without evidence of insurability
Permanent - (answers)This is a general term used to refer to various forms of life insurance that
build cash value and remain in effect for the entire life of the insured (or until age 100) most
common type is whole life
, Whole Life Insurance - (answers)This provides lifetime protection, and includes a savings
element (or cash value).
age 100 - (answers)At what age do life policies endow
Level Premium
Death benefit
Cash Value
Living Benefits - (answers)Four key characteristics of whole life insurance?
Straight whole life
limited-pay whole life
single premium whole life - (answers)Three basic forms of whole life insurance?
Straight life - (answers)of the three whole life forms,w hich has the lowest annual premium
Adjustable Life - (answers)This was developed in an effort to provide the policyowner with the
best of both worlds (term and permanent coverage)
Universal Life - (answers)This is known by the generic name, flexible premium adjustable life.
an annually renewable term insurance - (answers)The insurance component of a universal life
policy is always what?
Insurance
Cash account - (answers)two components of universal life policy?
Option A (LEVEL DB)
