A binding agreement
An immediate, temporary form of life insurance coverage that is effective from the date the initial premium is paid, regardless of the applicant's insurability
What is a binding receipt?
A type of insurance that offers coverage for a defined duration and pays a death benefit if the insured dies within that term
What is term life insurance?
A permanent type of life insurance that includes a death benefit and a savings component
What is cash value life insurance?
When it comes to your hobby, insurers consider this sport, which involves jumping out of a plane, high-risk.
What is skydiving?
This is the period after a premium is due during which a policy can be paid without a policy lapsing
What is a grace period?
A binding agreement between you and an insurance provider where you pay premiums for a financial payout.
What is a contract in life insurance?
The policy ceases to exist and no benefits are paid.
What is what happens to a term life insurance policy if the insured survives the term?
The cash value feature, which accumulates tax-deferred over time.
What is a significant aspect of permanent life insurance?
A policy application could be denied if you regularly engage in this dangerous, vertical rock-based activity.
To provide a financial safety net for your dependents after your death.
What is the primary purpose of life insurance?
A lump sum disbursed to your designated beneficiaries if you pass away while the policy is active
What is a death benefit in life insurance?
A type of insurance that provides lifelong coverage, ensuring that the death benefit is paid regardless of when the insured passes away, as long as premiums are maintained
What is permanent life insurance?
The other main type of life insurance that does not build cash value.
What is term life insurance?
A life insurance underwriter will review your records for all types of these, including those for anxiety or high blood pressure
What is Medical conditions?
This clause ensures that even if the insured’s age was misstated, the policy benefit will be adjusted to what the premium would have purchased at the correct age.
What is a misstatement of age clause?
May use the tax-exempt payout for expenses such as funeral arrangements, debt settlement, mortgage obligations, or daily living costs.
What is beneficiaries use the death benefit?
Whole life and universal life insurance.
What is common forms of permanent life insurance?
This portion of your premium payment is what funds the growth of your policy's cash value
What is the remaining portion, after the costs of insurance?
A past diagnosis of this serious illness could mean higher rates, or even denial of coverage
What is pre-existing condition?
It assures that your family will remain financially stable in the face of unforeseen circumstances.
What is the peace of mind does life insurance provide?
An agent would issue a binding receipt after collecting this from a life insurance applicant, putting the coverage into effect right away
What is the initial premium?
"This period is the timeframe during which the term life insurance policy is active and a death benefit can be paid
What is the policy term?
The tax status of the cash value's growth as long as it remains inside the policy
What is tax-deferred?
Your medical background, body weight, and lifestyle choices such as smoking or engaging in high-risk activities
What is personal factors can affect your insurance rates?
This refers to the value of a person's future income to their family, which can be estimated and used to determine the necessary life insurance coverage.
What is human life value?