Term and Endowment Insurance
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1.Term insurance is considered __________, as it only pays a death benefit if theinsured dies during the term selected and provides no living benefits.
2. Term insurance policies do NOT accumulate ___
3. Term insurance has a ______ initial premium than permanent insurance.
4. Three basic types of term insurance are ____ term, _________ term, and __________ term.
- 1. temporary insurance
- 2. cash value
- 3. lower
- 4. level / decreasing / increasing
1. The term policy that provides the same amount of protection throughout the selected termis called _____ term insurance.
2. _______ term insurance provides coverage that reduces over the policy term.
3. The type of insurance issued on the life of a borrower used to pay off a loan if the insureddies is referred to as ______ insurance and the type of insurance used to pay off the balance of your home loan is called _________________ (all acceptable) insurance.
4. A term insurance policy that has a death amount that gets larger as the policy continues iscalled an __________ insurance policy.
- 1. level
- 2. decreasing
- 3. credit life / mortgage protection/mortgageredemption/mortgage life
- 4. increasing term
1. A term policy that allows the insured to buy an additional term period of coverage without evidence of insurability is ________ term insurance.
2. A renewable term insurance policy is said to have a ________ premium, as premiums will increase at each renewal to reflect the insured’s higher age.
3. Under a ______ term insurance policy the premium will be reduced to a select, but if theinsured cannot prove insurability, the insured can renew only at a higher, or _______ level.
4. A term policy that allows the insured to change to a permanent insurance policy withoutany evidence of insurability is a ________ term insurance policy.
5. Term insurance may be converted at either the insured’s ________ age or at the insured’s _______ age, depending on the terms of the policy.
- 1. renewable
- 2. step-rate
- 3. re-entry / ultimate
- 4. convertible
- 5. attained / original
1. A permanent insurance policy specifically set to endow before age 100 is known as an ________ policy.
2. A 30-year endowment policy provides insurance coverage for ___ years and will endow in ___ years.
3. An endowment policy sold after 1984 is not treated as life insurance for ____ purposes.
4. Retirement income policies are a combination of an _______ and an _______.
5. If the insured in an endowment policy dies prior to endowment, the beneficiary will receiveeither the ______ or the _______, whichever is greater.
- 1. endowment
- 2. 30 / 30
- 3. tax
- 4. endowment / annuity
- 5. death benefit / cash value
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