The Basics
What provides protection for the potentially high cost of loss of life?
Life Insurance
A person who is designated to receive the death benefit, according to the terms in the policy.
Beneficiary
Who is life insurance purchased through?
Insurance Carriers
Provides temporary coverage for a specific period of time.
Term Insurance
provides life long coverage.
permanent life insurance
Who owns the policy and has control over adjustments made after policy enforcement?
Policy owner or Policy holder
Accessible portion of the face amount of the policy that covers emergency expenses, supplements retirement income, or covers expenses related to illness or injury.
Living Benefits
The process in which information is gathered through an application to find out if the client is insurable.
Underwriting
type of term life insurance that allows you to renew the policy for additional periods without needing to reapply or undergo medical exams
Renewable term insurance
type of term life insurance that allows the policyholder to switch their coverage to a permanent life insurance policy, typically whole life, without requiring a new medical exam
Convertible term insurance
Who is responsible for paying the premiums of a life insurance policy?
Payor
Policy summary
Pertains to the likelihood that a person will experience loss of life.
Risk
The portion of premium paid that accumulates overtime.
Cash Value
A provision that adds to or adjusts the terms or coverage of the policy.
Riders
What is the specified amount of money required by the insurance company in order for the insurance policy to remain active or in force over time?
Premium
Who is life insurance purchased with?
Licensed Agent
What are the 4 major risk categories?
Medical, Criminal, Driving, Age
add-on to a life insurance policy that provides a small amount of life insurance coverage for a child
Child term rider
permanent life insurance that provides coverage for your entire life and builds cash value that can be accessed during your lifetime
Whole Life Insurance
An amount of money paid by the insurance company in the event of death of an insured person.
Death Benefit
Occurs when a policy owner neglects to pay his or her insurance premium on time, according to the terms of the contract.
Policy lapse
a legitimate financial stake or interest in the person's life you are insuring. Such as spouse, business partner, child or parent.
Insurable Interest
life insurance with an investment component, where the growth of the cash value is tied to the performance of a stock market index like the S&P 500
(IUL) Index Universal Life
Insurance product designed to pay out a lump sum or stream payments to an individual
Annuity