Florida Agent's Life (including Annuities & Variable Contracts): General Knowledge 14% / 100% VERIFIED
8 views 0 purchase
Course
Florida Agent\'s Life
Institution
Florida Agent\'s Life
Florida Agent's Life (including Annuities & Variable Contracts): General Knowledge 14% /
100% VERIFIED
Term Insurance - CORRECT ANSWER - a temporary protection. It only provides coverage for a specific
period of time. Known as the PURE life insurance. Term policies provide for the greatest amo...
Florida Agent's Life (including Annuities & Variable Contracts): General Knowledge 14% /
100% VERIFIED
Term Insurance - CORRECT ANSWER - a temporary protection. It only provides coverage for a specific
period of time. Known as the PURE life insurance. Term policies provide for the greatest amount of
coverage for the lowest premium compared to any other form of protection. AKA Pure Death Protection
Term Insurance Provides: - CORRECT ANSWER - • If the insured dies during this term, policy pays the
death benefit to the beneficiary.
• If policy is canceled or expires prior to the insures death, nothing is payable acts the end of the term;
and
• There is no cash value or other living benefits.
Types of Term Life - CORRECT ANSWER - The three different types of Term coverage available are based
on how the face amount (death benefit) changes during the policy term:
• Level
• Increasing
• Decreasing
• Return Of Premium
• Annually Renewable
Level Term Insurance - CORRECT ANSWER - Level Term is 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 Premium Term - CORRECT ANSWER - Level Premium Term provides a level death benefit and a
level premium during the policy term. The premium will remain level during the duration of the term
policy and the death benefit will remain the same. If the policy is renewed at the end of the term, the
premium will be calculated based on the insured's attained age at time of renewal.
, Annually Renewable Term (ART) - CORRECT ANSWER - Annually Renewable Term (ART) 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
attained age, as the probability of death increases.
Decreasing Term Policies - CORRECT ANSWER - Decreasing Term Policies feature a level premium and a
death benefit that decreases each year over the duration of the policy term. COMMONLY PURCHASED
TO PAY OFF MORTGAGES IN EVENT OF DEATH.
Return of Premium - CORRECT ANSWER - Return of Premium (ROP) is an increasing term insurance
policy and pays an additional death benefit to the beneficiary equal to the amount of the premiums
paid. The Return of Premium is paid IF the death occurs within a specified period of time or if the
insured outlives the policy term.
Special Features of Term Insurance - CORRECT ANSWER - SPECIAL FEATURES of Term Insurance
Most term insurance policies are renewable, convertible, OR renewable and convertible (R&C).
Renewable Provision - CORRECT ANSWER - allows the policy owner the right to renew the coverage at
the expiration date without evidence of insurability. The premium will be based on the insured's
attained age at the time of conversion
Convertible Provision - CORRECT ANSWER - Convertible provision provides the policy owner the right to
convert the policy to a permanent insurance policy without evidence of insurability. The premium will be
based on the insured's age at the time of conversion.
Traditional Whole Life Products - CORRECT ANSWER - Permanent life insurance is a general term used 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 till 100) as long as the premium is paid. The most common type of insurance is
whole life.
Ordinary Whole Life - CORRECT ANSWER - Straight Whole Life AKA Straight Life, Ordinary Life,
Continuous Premium Whole Life: the policy owner pays the premium from the time the policy is issued
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 smartdove. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.99. You're not tied to anything after your purchase.
