Life Insurance Basics
The economic value of a person's future earnings.
What is Human Life Value?
Life insurance that provides protection for a specific period of time.
What is Term Life Insurance?
The person whose life expectancy is used to determine annuity benefits.
Who is the Annuitant?
The waiting period before disability benefits begin.
What is the Elimination Period?
Medicare eligibility generally begins at this age.
What is Age 65?
This requirement must exist when a life insurance policy is purchased on someone else's life.
What is Insurable Interest?
This permanent life policy typically has fixed premiums, a fixed death benefit, and guaranteed cash value accumulation.
What is Whole Life Insurance?
During this phase, money is deposited into the annuity.
What is the Accumulation Period?
This disability definition means the insured cannot perform the duties of their regular occupation.
What is Own Occupation?
This part of Medicare covers hospital expenses.
What is Medicare Part A?
This approach calculates life insurance needs based on future expenses, debts, and income replacement.
What is the Needs Approach?
This policy allows flexible premium payments and an adjustable death benefit.
What is Universal Life Insurance?
This annuity begins making income payments within one year of purchase.
What is an Immediate Annuity?
A disability benefit that pays when an insured loses only part of their income.
What is Residual Disability?
Medicare supplement policies are commonly known by this name.
What are Medigap Policies?
The three primary factors used to determine life insurance premiums.
What are Mortality, Interest, and Expenses?
This life policy invests cash values in separate accounts and may fluctuate in value.
What is Variable Life Insurance?
This annuity guarantees a minimum rate of interest.
What is a Fixed Annuity?
This government program provides disability income benefits for qualified workers.
What is Social Security Disability Insurance (SSDI)?
This Medicare option combines Parts A and B and is offered by private insurers.
What is Medicare Advantage (Part C)?
A producer obtains information about an applicant's health, finances, and lifestyle before the insurer makes its final decision.
What is Field Underwriting?
When an employee leaves a company, this group life insurance feature allows coverage to be converted to an individual policy without proving insurability.
What is the Conversion Privilege?
This tax-free exchange allows one life insurance policy or annuity to be exchanged for another.
What is a 1035 Exchange?
Loss of sight, hearing, speech, or two limbs may qualify for this type of disability.
What is Presumptive Disability?
This type of long-term care provides assistance with bathing, dressing, and eating.
What is Custodial Care?