Characteristics of Life Insurance Policies

The video tutorial explains various types of life insurance policies, including whole life, limited payment life, term life, endowment insurance, and life annuity. It covers the key features of each policy type, such as premium payments, cash value accumulation, and the conditions under which benefits are paid to beneficiaries. The tutorial also discusses the differences between these policies and introduces the concept of universal life insurance, which combines elements of both whole and term life insurance.

What is a key feature of a whole life insurance policy?

• It provides coverage for a specific term only.

• It accumulates cash value over time.

• It does not require premium payments.

• It ends if the insured survives the term.

How does a limited payment life policy differ from a whole life policy?

• It only covers a specific term.

• Premium payments stop after a certain period.

• It does not accumulate any cash value.

• It requires lifetime premium payments.

What happens at the end of a term life insurance policy if the insured is still alive?

• The policy automatically converts to a whole life policy.

• The insured receives the accumulated cash value.

• The policy continues with reduced premiums.

• The relationship between the insurer and insured ends.

Which type of insurance pays a lump sum at the end of a specified term?

• Universal life insurance

• Endowment insurance

• Term life insurance

• Whole life insurance

What is a characteristic of a universal life insurance policy?

• It requires no premium payments.

• It does not allow borrowing against the policy.

• It combines whole life and term life elements.

• It only provides term life coverage.