Chapter 11 - LIFE INSURANCE BE1J

Policies in which the cash value built up inside the policy, equals the death benefit (face amount) at a certain age.

• Insurance

• Deposit

• Endowment

It provides for a level premium, and a cash value table included in the policy guaranteed by the company.

• Endowment

• Term Insurance

• Whole Life Insurance

It builds a cash value that reduces the amount at risk to the insurance company and thus the insurance expense over time.

• Permanent Life Insurance

• Term Life Insurance

• Universal Life Insurance

It provides for life insurance coverage for a specified term of years for a specified premium.

• Permanent Life Insurance

• Term Life Insurance

• Universal Life Insurance

It is a contract between the insurer and the policy owner whereby a benefit is paid to the designated beneficiary or beneficiaries if an insured event occurs which is covered by the policy.

• Property Insurance

• Car Insurance

• Life Insurance

He/She receives policy proceeds upon the insured's death.

• Beneficiary

• Policyholder

• None of these

• All of these

It is a life insurance that remains in force (in-time) until the policy matures (pays out) unless the owner fails to pay the premium when due (the policy expires).

• Permanent Life Insurance

• Term Life Insurance

• Whole Life Coverage

One of disadvantages of whole life insurance:

• Guaranteed death benefits

• Guaranteed cash values

• Premium inflexibility

It is a relatively new insurance product intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for a higher internal rate of return.

• Term Life Insurance

• Universal Life Coverage

• Whole Life Insurance

TRUE or FALSE: The owner can change the beneficiary unless the policy has an irrevocable beneficiary designation.

• True

• False

• Not Sure