Exam (elaborations)
2024 INDIANA LIFE AND HEALTH-LIFE INSURANCE POLICIES EXAM WITH CORRECT ANSWERS
- Course
- Institution
2024 INDIANA LIFE AND HEALTH-LIFE INSURANCE POLICIES EXAM WITH CORRECT ANSWERS
[Show more]
Content preview
2024 INDIANA LIFE AND HEALTH-LIFE INSURANCE POLICIES EXAM
WITH CORRECT ANSWERS
Whole Life Insurance - CORRECT ANSWERS-Provides lifetime protection, and
includes a savings element (or cash value). Whole life polices endow at age
100, meaning the cash value created by the accumulation of premium is
scheduled to equal the face amount of the policy at age 100.
Key Characteristics of Whole Life Insurance - CORRECT ANSWERS--Level
premium: the premium for whole life policies is based on issue age, therefore
remains the same throughout the life of the policy
-Death benefit: the death benefit is guaranteed and also remains level for life
-Cash value: the cash value, created by the accumulation of premium, is
scheduled to equal the face amount of the policy when the insured reaches
100
-Living benefits: the policyowner can borrow against the cash value while the
policy is in effect, or can receive the cash value when the policy is
surrendered
Straight life (continuous premium whole life) - CORRECT ANSWERS-The basic
whole life policy. The policyowner pays until the insured's death or age 100.
Of the common whole life policies, straight life will have the lowest annual
premium.
Limited-pay - CORRECT ANSWERS-Whole life designed so that the premiums
for coverage will be completely paid-up well before age 100
Single premium whole life - CORRECT ANSWERS-Designed to provide a level
death benefit to ago 100 for a one-time, lump-sum payment.
Modified Life - CORRECT ANSWERS-A type of whole life policy that charges a
lower premium in the first few policy years, then a higher level premium for
the remainder of the insureds life
Graded premium whole life - CORRECT ANSWERS-Premiums start out
relatively low and then level off at a point in the future. The premium
typically starts at approximately 50% or lower than the premium of a straight
life policy. It then gradually increases each year for a period of usually 5 or
10 years, and then remains level thereafter.
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 Elitaa. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
72349 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now