NC Life insurance state exam study guideline already graded A+
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NC Life Insurance
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NC Life Insurance
NC Life insurance state exam study guideline already graded A+
Term Insurance
Used for Temporary Situations. Net cost highest in the long run. Premiums goes up every year based on current (attained)age.
Term Insurance
Expire's at a certain age/Time in the future. May be renewable up to a cert...
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NC Life insurance state exam study guideline already
graded A+
Term Insurance
Used for Temporary Situations. Net cost highest in the long run. Premiums goes up
every year based on current (attained)age.
Term Insurance
Expire's at a certain age/Time in the future. May be renewable up to a certain age or
date with out a phyical Exam.
Level Term Insurance
Term insurance can be Renewed annually. Has a level Face Amount at renewal,
Premiums goes up. Can be purchased for a Year or as often as 5, 10, 15, to 20 years
inclements with average premium. Premiums and Face Amounts are "Level" for a
period of "Time".
Decreasing Term Insurance
It is NOT Annual Renewable term. Face Amount goes down, while Premiums remain
the same. Decreasing Term insurance is often used as a mortage redemption. Can be
converted to Whole Life, regardless of health. Premiums stays the same. Costs
increases as Face Amount decreases, by expiration the Face Amount is Zero.
Increasing Term Insurance
Term is added as a rider to Whole Life policies, at an extra cost. Face Amount goes up.
It Allows beneficiary to recieve Face Amount plus Premiums or Cash Value.
Renewability
Most Term Is renewable up to a certain age regardless of health. That can be renewed
without proof of the insureds insurability, up to a certain specified maximum age.
Convertibilty
Most are convertible to Whole Life policies regardless of health. Conversions are based
on current "attained" age. NOT original age. Conversion may only be to a move
expensive policy, such as Whole Life.
Term insurance
You can not convert "Term to Term" You can convert "Term to Whole Life" You can
never convert to more coverage than you have.
" If you want more insurance, you will have to pass a physical exam and pay premiums
upon your current "attained" age.
What are the 9 types of Whole Life Insurance Policies?
"Ordinary (Straight) Life" " Limited Pay" " Single-Premiums Whole Life" "Adjustable
Whole Life" Universal Whole Life" Variable Whole Life" "Variable/Universal Whole Life"
"Interest Sensitive Whole Life" " Equity-indexed Life
"Ordinary (Straight) Life"
(Fixed Premiums)
Permanent protection (matures at age 100) Guaranteed Tax deferred Interest rate on
Cash Value. Cash Value builds slowly for the first 3 years. Premiums are level, since
the company risks goes down as Cash Value goes up. If you die the insurer keeps the
Cash Value to offset their risks. Insureds has access to Cash through Cash Surrender
or a policy loan. "Rates are per unit of protection" ($1,000 is 1 unit) C/V is guaranteed to
, be a certain amount per $1,000 (in the future). C/V will equal F/A at policy maturity (age
100).
Limited Pay and Single premium Whole Life
(Fixed Premiums)
Limited Pay can also be as LP65 or 20pay life 30 paylife, so don't get these confussed,
they are the same thing.
Premium paying period is shorter. Still matures at age 100 (Not end of premium paying
period) Client pays same amount of money over a shorter period of time. The shorter
the premium paying period, the higher the premium. C/v builds faster than Oridary WL.
A single-premium policy will have an Immediate C/V.
Limited-pay Whole Life
A 20 paylife will be paid up in 20 years
If purchased at age 30, paid up at age 50. The premium is paid up, your still covered till
the policy matures at age 100.
A life paid up at age 65, will be paid up at age 65 (LP65)
If purchased at age 30, paid up at age 65. The premium is paid up at age 65, your still
covered until policy matures at age 100.
Adjustable Whole life
( Flexible Premium)
Is a combination of Term and Whole Life! Still cover you until you die or age 100
(matures) Insureds can adjust Face Amount, Premiums or Term of Protection. Sold to
Clients with Fluctuating income ( real estate brokers) Coverage may not be increased
beyond the original amount without an physical.
Universal Whole Life
(Flexible Premiums)
Guaranteed "Minimum" Interest Rate. Current interest rate which varies year to year.
Has Extreme Flexibilty regarding premiums payments.
Insured does not have to pay annual premium ( Cash Value may be debited to pay cost
of protection) "THIS WOULD NOT BE A LOAN" Protection portion of policy is actually
term insurance ( cost increases)
Target Premium based on projected earnings.
Option A: Universal Life has a level death benefit (term)
Face Amount is made of term insurance
Option B: Universal Life will pay beneficiary both Face Amount PLUS Cash Value.
Variable Whole Life
(Fixed Premiums)
Cash Value deposited into a "Separate Account" (Like a mutual Fund) NO guaranteed
rate of return or Cash Value. It does have a "Minimum death beneft (Face Amount) is
guaranteed. Projections may be used as long as they are not guaranteed.
Requires FINRA Series 6 or 7 license to sell!
FINRA ( Financial industry Regulatory Authority)
Variable/ Universal Whole Life
(Flexible Premium)
Combines best features of both Universal and Variable whole life. Requires a FINRA
series 6 or 7 securities license to sell. Clients can self direct cash values into sub-
accounts.
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