Exam (elaborations)
TEXAS HEALTH AND LIFE CHAPTER #2 QUESTIONS AND ANSWERS
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TEXAS HEALTH AND LIFE CHAPTER #2 QUESTIONS AND ANSWERS
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TEXAS HEALTH AND LIFE CHAPTER #2QUESTIONS AND ANSWERS
Cash value - Answer-The amount of money saved in a whole life policy that the
policyholder can take by either borrowing against or cashing in the policy
Face Amount - Answer-the amount of benefit stated in the life insurance policy
Fixed Life Insurance - Answer-contracts that offer guaranteed minimum or fixed benefits
Level Premium - Answer-the premium that does not change throughout the life of a
policy
Liquidation - Answer-converting assets to cash
Nonforfeiture Values - Answer-Those guaranteed values in a life insurance policy that
cannot be taken from the insured, even if he or she ceases to pay premiums.or policy
lapses
Qualified Plan - Answer-A retirement plan that meets irs guidelines forbreciving
favourable tax treatment
Suitabilitys - Answer-A requirement to determine if an insurance product is appropriate
for a customer
Variable Life Insurance - Answer-whole life insurance that invests the cash value of the
policy in stocks or other high-yielding securities without guarantees of performance
Term Life Insurance - Answer-Pure protection
Last for specific term no cash value
Level-premium term insurance - Answer-Level death benefit and level premium
Annually Renewable Term - Answer--Renews each year without proof of insurability
-Premiums increase due to attained age
Decreasing Term Insurance - Answer-annual premium remains constant but the face
amount of the policy declines each year.
Features of Term Policies - Answer-- renewable: renew the policy without evidence of
insurability
- convertible: right to convert a term policy to a permanent policy without evidence of
insurability
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