What Policy Type?
This policy provides coverage for a specific period of time and has no cash value
TERM
This rider waives premium payments if the insured becomes disabled
Waiver of premium for disability rider
This is the best rate class someone can qualify for
Preferred Plus
Customer has a $300k mortgage, $50k in credit card debt and wants to replace their $100k a year income for 5 years. What is their life insurance need?
$950k---likely $1 mil with price banding
What is a contingent beneficiary?
also known as secondary
This permanent policy has guaranteed premiums, guaranteed death benefit and guaranteed cash value growth
Whole Life
This rider provides coverage for the insured's children-and can be broken off at age 18 to their own policy
Children's term rider
What is the highest table rating that can be applied to a policy?
40
TRUE OR FALSE: Term life policies are nonrenewable.
FALSE. State Farm® term life insurance policies allow the policy owner to continue coverage past the original term period of the policy. Each year, when the policy is renewed, the premium increases to the amount for the insured's current, “attained” age. Select Term policies may be renewed until the insured is age 95.
This term means that assets pass down a family bloodline if the beneficiary dies before the insured.
per stirpes
This type of policy has flexible premiums and adjustable death benefits.
Universal Life
This rider adds term coverage to a permanent policy to get lower cost coverage.
Term rider
True or False: Someone who discloses marijuana use will be ineligible for coverage since they do illegal drugs
FALSE- they will get a tobacco rating
TRUE OR FALSE: State Farm has the lowest life insurance rates.
FALSE. State Farm recognizes our pricing may not be as low as some of the competition (especially internet-based providers), but it is our intent to compete against benchmark competitors that have the same conservative approach as State Farm. It is important that recommendations include the proper amount of insurance for the duration of the need.
Minor children cannot receive life insurance proceeds without this
A guardian or trust
This policy's cash value is invested in sub-accounts and tied to market performance
Variable life
True or False: There are 3 available riders for GIFE policies
FALSE! No riders are available for GIFE
TRUE or FALSE: You can convert your term policy to a GIFE
False- GIFES are excluded from conversion rights
$250k
$500k
$1 Million
$3 Million
Explain the PURCHASE OPTION on the child's term rider
CTR coverage includes a purchase option on the 18th birthday of any child covered by this rider. This purchase option must be exercised within 31 days of the child’s 18th birthday. It allows the purchase of up to five times the amount of CTR coverage without evidence of insurability with any eligible policy issued by the company at the time the option is exercised.
This feature allows a term policy to be concerted to permanent coverage without underwriting
Term conversion option
This rider is only available on our universal life policies and provides accelerated death benefits to pay for long term care expenses.
Flexible Care benefit Rider
In what 2 situations will underwriting do a reconsideration of rating?
A policyholder is allowed to reconsider a policy in force in two scenarios:
Explain how conversion of the child term rider works
Conversion of the CTR may be made at the time of expiry of coverage (age 25 or on the policy anniversary when the insured is age 65.) It allows for up to five times the amount of CTR coverage without evidence of insurability to any eligible policy issued by the company at that time. This conversion option must be completed within 31 days of the child's 25th birthday. The policy date will be 32 days after the insured’s 25th birthday.
TRUE OR FALSE: Tobacco rating are only applicable customers over 18.
TRUE. Children can smoke and not be rated!