Types of policies
What is a term life policy?
A policy that provides coverage for a specified term or period and pays out only if the insured dies within that term.
What is a beneficiary?
The person or entity designated to receive the death benefit from a life insurance policy.
What is the Illinois Department of Insurance?
The state agency responsible for regulating insurance companies and agents in Illinois.
What is underwriting?
The process insurers use to evaluate risk and determine eligibility for coverage.
What is a waiver of premium rider?
A rider that waives future premium payments if the insured becomes disabled.
What is a whole life policy?
A permanent life insurance policy with fixed premiums, a guaranteed death benefit, and a cash value component.
What is a premium?
The amount paid for an insurance policy, either monthly, quarterly, or annually.
What is the purpose of a life insurance license?
It authorizes an individual to sell life insurance legally in a state.
What is a risk classification?
The category an insurance company assigns to an applicant based on health, lifestyle, and other factors
What is an accidental death benefit rider?
A rider that provides an additional death benefit if the insured dies due to an accident.
What is a universal life policy?
A flexible permanent life insurance policy with adjustable premiums and death benefits.
What is a deductible?
The amount a policyholder must pay out of pocket before insurance coverage begins.
What is the difference between a resident and non-resident
A resident license is for those living or working in the state, while a non-resident license allows agents licensed in one state to sell in another.
What is an application form?
The document completed by the applicant to request insurance coverage.
What is a long-term care rider?
A rider that allows policyholders to use their death benefit to cover long-term care expenses. s.
What is a variable life policy?
A permanent policy where the cash value is invested in sub-accounts that can fluctuate in value.
What is a rider?
An optional addition to an insurance policy that provides extra benefits or coverage.
What are the continuing education requirements?
Life insurance producers must complete a set number of continuing education hours every renewal period to maintain their license.
What is a medical exam?
A health examination required by insurers to assess an applicant's risk.
What is a guaranteed insurability rider?
A rider that allows the policyholder to purchase additional coverage at specific times without proof of insurability
What is a modified endowment contract (MEC)?
A life insurance policy that fails the "7-pay test" and is taxed differently than standard life insurance.
What is insurable interest?
A financial or familial relationship where the policyholder benefits from the insured’s continued life.
What is the Illinois Life Insurance Guaranty Association?
A safety net that protects policyholders if an insurance company becomes insolvent.
What is field Underwriting?
The initial assessment done by an insurance agent before submitting an application for underwriting.
What is a return of premium rider?
A rider that refunds premiums paid if the insured outlives the policy term