Traditional Whole Life Products
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1. Life insurance provides protection against ________ death.
2. The sum payable upon the death of the insured is called the _______
3. Payments made to the policyowner while the insured is still alive are called the ________.
- 1. Premature
- 2. Death Benefits
- 3. Living Benefits
1. The person who controls all rights to the policy while the insured is alive is called the _________.
2. The ____ receives the death benefit when the insured dies.
3. The entity that agrees to pay the benefits cited in the policy is the ______.
- 1. policyowner
- 2. beneficiary
- 3. insurer
1. ________ insurance provides for payment of the face amount at maturity or the insured’sdeath.
2. The amount promised to be paid by the insurer to the policyowner at maturity of the policyis called the _____.
3. ______ insurance pays the face amount only if the insured dies within a certain period oftime.
4. The different variations of whole life policies differ only with respect to how and when _____ are to be paid.
- 1. Permanent
- 2. endowment
- 3. Term
- 4. premiums
1. Basil wants a policy that provides for level premiums and level coverage for the durationof the policy. He will buy a __________ policy (different acceptable answers).
2. With a ________ payment plan, premiums do not change as the insured gets older.
3. The amount held in reserve by the insurer is called the policy’s cash value.
4. The face amount of a whole life policy consists of the _______ and the ________.
- 1. straight life/ordinary life/level premium wholelife/continuous premium/whole life
- 2. level premium
- 3. pure insurance / cash value
1. Any excess premiums the first ____ years can be used to pay commissions and other salesexpenses.
2. A policy with a face amount of $100,000 that has $25,000 in cash value has _______ as theamount at risk portion.
3. If a policy loan is not repaid before the insured dies, the ________ and the _________ will be deducted from the policy proceeds.
4. If a policyowner cancels his whole life policy, state _________ laws state that theaccumulated cash value cannot be forfeited.
- 1. two
- 2. $75,000
- 3.outstanding loan balance / unpaid interest
- 4. nonforfeiture
1. A “20-pay life” policy has premiums that are payable for 20 years and then the policy isconsidered to be “_______.”
2. A “life paid up at age 65” policy has premiums payable until age 65 and will remain inforce until age ___ or death, whichever occurs first.
3. A whole life policy that is paid up with only one premium payment is called a _______ whole life policy.
4. The policy that has the largest up front premium but is the least expensive in the long runwould be a ______ whole life policy.
5. The whole life policy that allows the policyowner to make changes to the term, faceamount, and premiums would be called an _______ life policy.
- 1. paid-up
- 2. 100
- 3. single-premium
- 4. singl -premium
- 5. adjustable
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