Life Insurance Basics
This type of policy provides coverage for a set period, usually at the lowest cost.
What is Term Life?
This rider allows the policyholder to accelerate a portion of the death benefit if terminally ill.
What is accelerated death benefit rider or living benefits?
The process of verifying that a product fits a client’s needs, objectives, and financial situation.
What is suitability?
A life insurance policy a business buys on an important employee is called what?
What is Key Person insurance?
When you ask open-ended questions to learn about a client’s life and needs, what is this called?
What is fact-finding?
The permanent policy that builds cash value with guaranteed premiums.
What is Whole life?
This rider waives premiums if the insured becomes disabled.
What is the Waiver of Premium Rider?
An agent must deliver this document at or before policy delivery outlining client rights.
What is the Policy Summary/Buyer’s Guide?
What kind of life insurance arrangement can fund the purchase of a deceased partner’s share of a business?
What is a buy-sell agreement?
If a client says “I need to think about it,” what should you do next?
What is ask more questions / schedule a follow-up / address concerns?
This type of policy allows the owner to adjust death benefit and premiums.
What is Universal Life?
A rider that allows the insured to buy additional coverage at specific times without evidence of insurability.
What is a Guaranteed Insurability Rider?
When you show a client a picture of how a policy might perform over time, what is that called?
What is an illustration?
If a bank asks a business owner to get life insurance so the loan will be paid if they die, what’s this called?
What is collateral assignment life insurance?
Sharing a real-life story about how life insurance helped a family is an example of what skill?
What is story-telling?
The nonforfeiture option that provides reduced paid-up insurance.
What is Reduced Paid-Up Insurance?
This rider covers funeral costs for a child or dependent.
What is the Child Term Rider?
What is the first step an agent should take before recommending a policy?
What is finding out the client’s needs / doing a fact-find?
A policy that rewards an executive by having the business pay the premiums but the executive own the policy is called what?
What is an executive bonus plan?
What’s the best way to explain a complex policy feature to a client?
What is using simple, everyday language or analogies?
The portion of premium that is invested in subaccounts similar to mutual funds.
What is variable life?
This benefit provides income for long-term care needs by accessing death benefit early.
What is a Chronic Illness or LTC Rider?
When you collect a client’s personal information, what should you do to keep it safe?
What is protect it / keep it confidential / follow privacy laws?
When a company buys policies on its owners so it can redeem their shares at death, what is this called?
What is an entity purchase buy-sell agreement?
What’s the term for checking in with existing clients to review their policies and uncover new needs?
What is a policy review or annual review?