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key concepts
Clauses/Calculations methods
Misc Insurance terms
Types of Life insurance
Term Life
100

The individual who buys the life insurance policy. 

whats a policy holder

100
A clause in a life insurance contract containing a waiverof- premium benefit alone or coupled with disability income.
What is disability clause
100
A contract between the insured and the insurer under which the insurer agrees to reimburse the insured for any losses suffered according to specified terms.
What is insurance policy
100
Life insurance designed to offer ongoing insurance coverage over the course of an insured’s entire life.
What is Whole Life
100
Insurance that provides only death benefits, for a specified period, and does not provide for the accumulation of cash value.
What is Term Life.
200

The insurance company that provides the coverage. 

what is an insurer

200
A clause in a life insurance policy that typically doubles or triples the policy’s face amount if the insured dies in an accident.
What is multiple indemnity clause
200
Any activity that lessens the severity of loss once it occurs.
What is loss control
200
Permanent cash-value insurance that combines term insurance (death benefits) with a taxsheltered savings/ investment account that pays interest, usually at competitive money market rates.
What is Universal Life.
200
A term insurance policy written for a given number of years, with coverage remaining unchanged throughout the effective period.
What is straight term.
300

The person or people who will receive the death benefit. 

what is beneficiary

300
An option in a life insurance contract giving the policyholder the right to purchase additional coverage at stipulated intervals without providing evidence of insurability.
What is guaranteed purchase option
300
Any activity that reduces the probability that a loss will occur.
What is loss prevention
300
A term policy designed to pay off the mortgage balance in the event of the borrower’s death.
What is mortgage life insurance.
300
A term insurance policy that maintains a level premium throughout all periods of coverage while the amount of protection decreases.
What is decreasing term life insurance
400

The regular payment made by the policyholder to maintain coverage.

what is premium

400
A method of determining the amount of life insurance coverage needed by multiplying gross annual earnings by some selected number.
What is multiple-of-earnings method
400
An advance, secured by the cash value of a whole life insurance policy, made by an insurer to the policyholder.
What is policy loan
400
Life insurance that provides a master policy for a group; each eligible group member receives a certificate of insurance.
What is group life.
400
A term life policy provision allowing the insured to renew the policy at the end of its term without having to show evidence of insurability.
What is renewability
500

The lump sum payment made by the insurer to the beneficiaries after the policyholder's death.

what is death beneift

500
A method of determining the amount of life insurance coverage needed by considering a person’s financial obligations and available financial resources in addition to life insurance.
What is needs analysis method
500
Benefits under Social Security intended to provide basic, minimum support to families faced with the loss of a principal wage earner.
What is Social Security survivor’s benefits
500
Life insurance sold in conjunction with installment loans.
What is credit life insurance.
500
A term life policy provision allowing the insured to convert the policy to a comparable whole life policy.
What is convertability