Which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options? A life insurance policy that has a level premium but allows the policyowner to choose from a selection of investment options is known as
Variable Life
.
An additional life insurance rider
allows the policyowner to purchase additional participating paid-up insurance for an additional premium (called paid-up additions) that increases the death benefit and accelerates the cash value growth, of an insurance policy.
What Is Level-Premium Insurance? Level-premium insurance is a type of
term life insurance
. With this type of coverage, premiums are guaranteed to remain the same throughout the contract, while the amount of coverage provided increases.
Which of the following life insurance policies allows a policyowner to take out a loan from the policy cash value?
Automatic Premium Loan (APL) Provision
: A permanent life insurance policy non-forfeiture provision that allows an insurer to automatically pay an overdue premium for a policyowner by making a loan against the policy’s cash value as long as the cash value equals or exceeds the amount of the premium due.
Adjustable life insurance
is a hybrid of term life and whole life insurance that allows policyholders the option to adjust policy features, including the period of protection, face amount, premiums, and length of the premium payment period.
What are 4 types of whole life policies?
- Universal. Universal life insurance often is considered the most flexible of all of the whole life varieties that are available. …
- Current Assumption. …
- Excess Interest. …
- Single Premium.
What are the two components of a universal policy?
Universal life insurance has two components:
death benefit coverage and an accumulating cash value
. When you pay your monthly premium, it’s split between the two parts of your policy, with a portion going to each.
What are the 4 types of insurance?
- Home Insurance. As the home is a valuable possession, it is important to secure your home with a proper home insurance policy. …
- Motor Insurance. Motor insurance provides coverage for your vehicle against damage, accidents, vandalism, theft, etc. …
- Travel Insurance. …
- Health Insurance.
What is a 65 life policy?
65 Life:
You pay level premiums until age 65, at which point coverage remains in place but there are no further payments
. 90 Life: You pay premiums until age 90, after which point your coverage continues but there are no more payments.
What is a disadvantage of term life insurance?
One of the major disadvantages of term insurance is
that your premiums will increase as you get older
. When you buy term life in your 20s or 30s, it will be much cheaper compared to when you need to renew your policy later on in your 50s or 60s.
A waiver of premium rider is an optional insurance policy clause that waives insurance premium payments if
the policyholder becomes critically ill or disabled
. To purchase a waiver of premium rider you may need to meet certain requirements for age and health.
What type of insurance policy is most commonly used in credit life insurance?
Which of the following types of insurance policies is most commonly used in credit life insurance? Credit insurance is a special type of coverage written to insure the life of the debtor and pay off the balance of a loan in the event of the death of the debtor. It is usually written as
decreasing term insurance
.
Which Nonforfeiture option is the highest amount protection?
Which nonforfeiture option has the highest amount of insurance protection?
The Extended Term nonforfeiture option
has the same face amount as the original policy, but for a shorter period of time.
What is another name for interest sensitive whole life insurance?
Current assumption whole life insurance, which is also known as
fixed premium universal life
or interest-sensitive whole life, is a variation of universal life insurance. It involves fixed premiums and fixed death benefits, and, as in other universal life policies, its growth in cash value depends on market conditions.
What is the difference between a straight life policy in a 20 pay whole life policy?
Term life is “pure” insurance, whereas whole life adds a cash value component that you can tap during your lifetime. Term coverage only protects you for a limited number of years, while whole life
provides lifelong protection
—if you can keep up with the premium payments.
What is another name for interest sensitive whole life insurance quizlet?
Universal Life
is a type of Whole Life insurance and is sometimes referred to on the exam as “interest sensitive” whole life. Universal Life policies have a cash value with a minimum guaranteed interest rate and an excess current interest rate.
