Life Ins. Basics
This is the person who receives the payout from a life insurance policy.
What is a beneficiary?
This fund should cover 3–6 months of living expenses, such as during job loss, medical bills, or car repairs.
What is an emergency fund?
Obtaining life insurance at a younger age usually results in this for the policyholder.
What is lower premiums?
This retirement plan grows on a fixed amount of interest, mirroring a particular index.
What is a fixed indexed annuity?
Primerica pioneered this philosophy in 1977 that combines affordable life insurance with investing for the future.
What is “Buy Term and Invest the Difference”?
The amount a policyholder pays regularly to keep their coverage active.
What is a premium?
This step in financial planning makes sure your loved ones don’t have to rely on GoFundMe.
What is the importance of getting proper life insurance coverage?
What are the 3 requirements that are needed to be considered an appointment?
Date, Time, Location.
This type of account allows you to save for retirement with contributions often made before taxes and is sponsored by private employers.
What is a 401(k)?
This free benefit can advance up to 40% of the policy’s face amount if the insured is terminally ill.
What is the Terminal Illness Benefit (TIB)?
This document is needed to start the claims process after someone passes away.
What is a death certificate?
Primerica’s child rider covers all eligible children under one rider, up to $50,000, from 5 days old until this age.
What does age 25 represent in child rider?
A client waits too long to get coverage and is diagnosed with a health condition. This may happen to their policy.
What is higher premiums or possible denial of coverage?
This rule helps estimate how long it takes for an investment to double at a fixed interest rate.
What is the Rule of 72?
This type of term allows the face amount to decrease while premiums remain the same.
What is decreasing term?
This step must be completed honestly to ensure proper coverage approval.
What is the application or underwriting?
A child can be covered under a child rider as young as...
5 days
Primerica term policies start at this minimum term length.
What is 10 years?
This type of account allows your money to grow tax-deferred until retirement, making early contributions more valuable.
What is a Roth IRA?
This renewal option allows clients to keep their original coverage amount without new underwriting, but the premium increases every year.
What is the Annual Renewable Term?
A couple was told their whole life policy would “last forever,” but at age 65 the rising cost of insurance drained their cash value and the policy lapsed. This shows how cash value policies hide this risk from families. (What hidden feature or cost in cash value life insurance can cause a policy to fail over time?)
What is increasing cost of insurance over time?
This type of financial plan allows money to grow tax-free for a child’s future education, can even be rolled into a Roth IRA if unused, and often ensures a child’s schooling is protected if a parent passes away.
What is a college savings/education plan?
Primerica honors the time already served under this provision if you replace an old policy, saving you from starting over.
What is the contestability period?
You need a securities license in order to offer this type of annuity to clients.
What is a variable annuity?
Primerica is one of the few life companies that does not exclude coverage if a client dies from this type of event.
What is an act of war or terror?