Types of Life Insurance Policies/ Questions & Definitions.
6 views 0 purchase
Course
Types of Life Insurance Policies
Institution
Types Of Life Insurance Policies
Types of Life Insurance Policies/ Questions & Definitions.
convertible - Answer: provision that provides the policy owner with the right to convert the policy to the permanent insurance policy WITHOUT evidence of insurability
permanent insurance - Answer: general term used to refer to various ...
Types of Life Insurance Policies/ Questions &
Definitions.
convertible - Answer: provision that provides the policy owner with the right to
convert the policy to the permanent insurance policy WITHOUT evidence of
insurability
permanent insurance - Answer: general term used to refer to various forms of life
insurance policies that build cash value and remain effective for the entire life of
the insured (or until age 100) as long as the premium is paid
most common type is WHOLE
straight life - Answer: basic whole life policy
policyowner pays the premium from the time the policy is issued until the
insured's death or age 100
Page 1 of 7
, this type will have the lowest annual premium
single premium whole life - Answer: whole life insurance providing a death benefit
until death or age 100 bought with a one-time, lump-sum payment
only pay one premium and it generates immediate cash
interest-sensitive whole life - Answer: AKA current assumption life
whole life policy that provides a guaranteed rate of interest comparable to money
market rates and can have fluctuating premiums based on changing assumptions
about risk, interest, and expense
survivorship life - Answer: AKA second-to-die
premium based on joint age that pays on the last death
type of policy is often used to offset the liability of the estate tax upon the death
of the last insured
joint life - Answer: single policy that insures two or more lives
the premium is based on a joint AVERAGE age & the death benefit is paid out on
the FIRST DEATH ONLY
Page 2 of 7
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Benzo. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.79. You're not tied to anything after your purchase.
