Exam (elaborations)
Arizona Life Insurance Exam - Life Insurance Policies
Arizona Life Insurance Exam - Life Insurance Policies
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Arizona Life Insurance Exam -Life Insurance Policies
Accumulate - -Build Up
-Attained Age - -The insured's age at the time the policy is renewed or
replaces
-Cash Value - -A policy's savings element or living benefit
-Deferred - -Withheld or postponed until a specified time or event in the
future
-Endow - -To have the cash value of a whole life policy reach the
contractual face amount
-Face Amount - -The amount of benefit stated in the life insurance policy
-Fixed Life Insurance Products - -Contracts that offer guaranteed minimum
or fixed benefits
-Lapse - -Policy termination due to nonpayment of premium
-Level Premium - -The premium that does not change throughout the life of
a policy
-Nonforfeiture Values - -Benefits in a life insurance policy that the
policyowner cannot lose even if the policy is surrendered or lapses
-Policy Maturity - -In life policies, the time when the face value is paid out
-Securities - -Financial instruments that may trade for value (like stocks,
bonds)
-Variable Life Insurance Products - -Contracts in which the cash values
accumulate based upon a specific portfolio of stocks without guarantees of
performance
-Term Insurance - -Temporary protection that provides coverage for a
specific period of time (also known as pure life insurance)
-Pure Death Protection - --If the insured dies during the term, the policy
pays the death benefit to the beneficiary
, -If the policy is canceled or expires prior to the insured's death, nothing is
payable at the end of the term
-There is no cash value or other living benefits
-Level Term - -Most common type of temporary protection purchased, this
term insurance has a death benefit that does not change throughout the
term
-Level Premium Term - -This term life insurance provides a level death
benefit and a level premium during the policy term
-Annually Renewable Term - -This is 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
-Re-entry Option - -The insured, upon the end of a term policy with a
guaranteed renewable option, may qualify for a discount premium rate with
proof of insurability is known as ______________
-Decreasing Term - -This term insurance features a level premium and
death benefit that decreases each year. It is primarily used when the amount
of needed protection is time sensitive, such as paying off a mortgage
-Increasing Term - -This term insurance features a level premium and the
death benefit increases each year. It is primarily used to account for inflation
and increasing cost of living
-LID - -*L*evel Term
*I*ncreasing Term
*D*ecreasing Term
-Permanent Life Insurance - -A general term to refer to various forms of life
insurance policies that build cash value and remain in effect for the entire life
of the insured (or until 100) as long as the premium is paid
-Whole Life Insurance - -Life Insurance with lifetime protection and a
savings element (cash value). These policies are endowed at the insured's
age 100, when the cash value and the face amount are equal, the death
benefit is level
-Level Premium Whole - -All whole life policies are based on the issue age,
so the premium remains level
-Living Benefits - -The policyowner can borrow against the cash value in a
whole life policy or receive the cash value when the policy is surrendered
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