Types of Life Insurance
Which type of life policy has a level premium and death benefit over the course of insured's entire life?
Whole Life
What is the account in a life policy called that takes a portion of your premiums paid that earns interest overtime?
Cash Value
What rider on a life policy doubles the death benefit in the event insured dies in an accident?
Accidental death rider?
What type of Underwriting asks no health questions?
Guaranteed Issue
What is the name of the Final expense policy through Mutual of Omaha?
Living Promise
Which type of life policy is intended to cover funeral expense?
Final Expense
Name 3 reasons someone would buy life insurance.
Funeral costs, legacy, income replacement, mortgage protections, debt, tax free benefit, charity/church donations
What is the rider called that allows insured to access the death benefit while still living?
Accelerated death benefit?
What is Simplified Underwriting?
Health questions and MIB/Script check only
What are the names of the 2 Final Expense Policies offered through American Amicable, and what's the difference?
Clear Choice & Platinum Solution
Platinum offers Funeral Planning and concierge services while Clear Choice does not.
Which type of life policy does NOT produce a cash value?
Term
What is the Death Benefit amount Social Security offers?
$255
What is the rider called that if insured becomes totally disabled, they are not responsible to make premium payments after the specified waiting period?
Waiver of premium rider
What are the 3 different types of death benefit pay outs on a life insurance policy, that is decided through the underwriting process?
Level, graded, return of premium(ROP)
What are the issue ages for Gerber's Guaranteed Issue policy?
50-80
True or False: A term policy can be converted to a whole life policy at any time.
False...there is a specific window insured has to be able to convert to whole life.
True or False: The beneficiary is still subject to pay taxes on the death benefit paid out through a life insurance policy.
False...Life insurance benefits are TAX FREE
True or False: All life insurance policies come with built in riders that don't cost anything.
False..some polices come with built in riders that have no cost, but many policies don't have built in riders at no cost. But instead have optional riders that are added to the premium amount.
Name 2 common conditions that are usually declined for life insurance.
Cancer, heart attack (major heart conditions), stroke, kidney/liver failure, HIV/AIDS, most neurological disorders, diabetic complications, severe metal health conditions, COPD/severe lung disorders, and substance abuse.
What is the minimum death benefit amount for the final expense policy with Mutual of Omaha?
$2000
What are the 3 types of Universal Life policies?
Guaranteed, Indexed, and Variable
What are the 2 types of beneficiaries listed on a life insurance policy?
Primary & Contingent
What does the Guaranteed Insurability Rider do?
Allows insured to increase the coverage at a higher premium, but is not required to go through the underwriting process again, even if they're health has declined.
What are the 2 most common underwriting classes?
Preferred and Standard
Which Term policy through Mutual Omaha has no medical exam?
Express