Alabama Life & Health Insurance Exam (2023/2024) Already Graded A
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Course
Alabama Life & Health Insurance
Institution
Alabama Life & Health Insurance
Alabama Life & Health Insurance Exam (2023/2024) Already Graded A Term Insurance Temporary protection because it only provides coverage for a specific period of time. Also known as pure life insurance
Term insurance provides what is known as _________________ pure death protection
Term insurance ...
Alabama Life & Health Insurance Exam (2023/2024) Already Graded A Term Insurance ✔✔Temporary protection because it only provides coverage for a specific period of time. Also known as pure life insurance Term insurance provides what is known as _________________ ✔✔pure death protection Term insurance provides the greatest amount of coverage for the _______________ ✔✔lowest premium Term insurance has no ____________ ✔✔cash value Three basic types of term coverage available, based on how the face amount (death benefit) changes during the policy term: ✔✔1. Level 2. Increasing 3. Decreasing Level term insurance ✔✔Most common type of temporary protection purchased. The word level refers to the death benefit that does not change throughout the life of the policy. Level in level term insurance refers to the ________________, which does NOT change ✔✔death benefit Annually Renewable Term (ART) ✔✔the purest form of term insurance. The 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, as the probability of death increases. Level Premium Term ✔✔provides a level death benefit and a level premium during the policy term. Increasing term ✔✔features level premiums and a death benefit that increases each year over the duration of the policy term. Decreasing Term ✔✔policies feature a level premium and a death benefit that decreases each year over the duration of the policy term. Nonrenewable Renewable Provision ✔✔allows the policyowner the right to renew the coverage at the expiration date without evidence of insurability Convertible Provision ✔✔provides the policyowner with the right t o convert the policy to a permanent insurance policy without evidence of insurability Re-entry Option ✔✔An option that gives the insured the opportunity for a discounted premium rate with proof of insurability Permanent Life Insurance ✔✔A general term us ed to refer to various forms of life insurance policies that build cash value and remain in effect for the entire life of the insured as long as the premium is paid. Most common type of permanent insurance: ✔✔Whole Life Whole Life Insurance ✔✔provides lifetime protection, and includes a savings element (or cash value)
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