Card Set Information

2013-06-17 11:07:18
CIC Life Health

Topics for Life & Health CIC
Show Answers:

  1. Name the characteristics of term life insurance:
    Insurance for a term or temporary period
  2. Define Term Insurance:
    • A: Face amount payable only if death occurs during stioulated years.
    • B: Protection is only for a limited number of years
    • C: pays nothing if the insured lives past the end of the term coverage period.
  3. What is the purpose and use of term life insurance?
    • 1. its identifiable or specif needs such as mortgages or loans
    • 2. Often sold when your need is great and money is little
    • It protects future insurability when converted
  4. What are the advantages of term life insurance?
    • 1. its easy for the buyer to understand.
    • 2. Maybe renewable or convertible
    • 3. intial low costs.
  5. What are some important features of term insurance?
    Its can be converted or renewed.  Convertabililty means the policy can exchange for a perm. type of coverage with out the need to prove insurability.
  6. What are 2 disadvantages of term life insurance?
    • 1. They have no cash value
    • 2. Coverage is designed to end before death
  7. Name 3 types of term insurance?
    • 1. Level Term
    • 2. Annual Term
    • 3. Decreasing term
  8. What is Level term - term life insurance?
    Level Term is when premium and face values remain level.  The policy is only for  a specified number of years 5,10, 15 or 20 and meant to renew or be converted to something more.
  9. What is Annual renewable term - term insurance?
    Annual term is when the face amount remains the same but the permiums increase
  10. What is Decreasing term - term insurace?
    The face value decreases but the premium reamins level.  Only this type is used for mortgages insurance - traditionl decreasing or are designed to decrease consisitenly to unpaid blanace of the mortgage