Life policy types
Temporary Life insurance with a stated death benefit.
Term Life Insurance
With 100/300 BI limits, three people each have $150,000 in BI damages from one accident. Maximum payable (BI) is
$300,000
In whole life, this is generally level and guaranteed in the base policy.
premium
Rider that allows buying more coverage later without new medical underwriting (subject to rider rules).
guaranteed insurability (GIO) rider
PAP provision that may reduce payment when only one item of a matching set (like one earring) is lost or damaged.
pair-and-set clause (or pairs & sets provision)
Permanent life with guaranteed level premium, guaranteed cash values, and lifetime coverage (dividends possible if participating). Replacement cost minus depreciation equals?
What is whole life
Typical ISO benchmark: to receive full replacement cost on the dwelling, coverage must be at least this percent of replacement cost value.
80%
the monthly charge that covers the cost of pure insurance protection is the?
cost of insurance (COI)
Nonforfeiture option that uses cash value to buy a smaller amount of permanent insurance with no more premiums due.
reduced paid-up insurance
A typical Personal Articles Policy insures scheduled items on this coverage basis: covered for direct physical loss on what perils?
open-perils / “all-risk”
Permanent life with flexible premiums and an account value credited with a declared interest rate.
What is universal life (UL
A vehicle you don’t own that temporarily replaces your covered auto while it’s out of normal use for breakdown, repair, servicing, loss, or destruction.
temporary substitute auto
Growth of cash value inside a life insurance policy is generally? And death benefits are paid to beneficiary are generally paid tax?
What is Tax-deferred and Income tax free
Rider that allows access to part of the death benefit if the insured is terminally ill (per definition).
accelerated death benefit (ADB)
PAP coverage usually extends to what area's / territories?
worldwide coverage
UL where interest credits are linked to an external index with caps/floors, but the policy isn’t directly invested in the market.
indexed universal life (IUL)
provision that adjusts your liability limits to meet another state’s minimum financial responsibility laws when you drive there.
out-of-state coverage (financial responsibility) provision
Whole life feature that can pay a missed premium by automatically taking a policy loan (if elected).
automatic premium loan (APL)
Participating whole life dividend option that buys additional fully paid permanent insurance, increasing both cash value and death benefit.
paid-up additions (PUAs)
When a PLUP covers a claim not covered by underlying insurance, the out-of-pocket amount before umbrella pays is the?
retained limit (umbrella SIR)
Permanent life where cash value is invested in subaccounts and the policyowner bears market risk
variable universal life (VUL)
Homeowners policy wording that can bar coverage when an excluded peril and a covered peril both contribute to a loss.
anti-concurrent causation (ACC) language
In UL, this equals death benefit minus cash value (and helps explain why COI risk can change).
net amount at risk
A living-benefit structure that pays a fixed monthly amount regardless of actual care expenses (vs. reimbursement).
indemnity benefit
A personal umbrella can “drop down” and cover a loss not covered by an underlying policy, but only after the insured pays this out-of-pocket amount (like a deductible).
the self-insured retention (SIR)