NC Life Insurance State Exam

Convertibilty - Most are convertible to Whole Life policies regardless of health. Conversions are based on current "attained" age. NOT original age. Conversion may only be to a move expensive policy, such as Whole Life. Term insurance - You can not convert "Term to Term" You can convert "Term to Whole Life" You can never convert to more coverage than you have. " If you want more insurance, you will have to pass a physical exam and pay premiums upon your current "attained" age. What are the 9 types of Whole Life Insurance Policies? - "Ordinary (Straight) Life" " Limited Pay" " Single-Premiums Whole Life" "Adjustable Whole Life" Universal Whole Life" Variable Whole Life" "Variable/Universal Whole Life" "Interest Sensitive Whole Life" " Equity-indexed Life "Ordinary (Straight) Life" (Fixed Premiums) - Permanent protection (matures at age 100) Guaranteed Tax deferred Interest rate on Cash Value. Cash Value builds slowly for the first 3 years. Premiums are level, since the company risks goes down as Cash Value goes up. If you die the insurer keeps the Cash Value to offset their risks. Insureds has access to Cash through Cash Surrender or a policy loan. "Rates are per unit of protection" ($1,000 is 1 unit) C/V is guaranteed to be a certain amount per $1,000 (in the future). C/V will equal F/A at policy maturity (age 100). Limited Pay and Single premium Whole Life (Fixed Premiums) - Limited Pay can also be as LP65 or 20pay life 30 paylife, so don't get these confussed, they are the same thing. Premium paying period is shorter. Still matures at age 100 (Not end of premium paying period) Client pays same amount of money over a shorter period of time. The shorter the premium paying period, the higher the premium. C/v builds faster than Oridary WL. A single-premium policy will have an Immediate C/V