MISSOURI LIFE AND HEALTH
INSURANCE
The basic characteristics of a variable life policy are - ANS-Fix premiums, a guaranteed
minimum death benefit
... [Show More] which fluctuates over the minimum, and cash values which
fluctuate and are not guaranteed.
Variable universal life - ANS-Is a type of life insurance that build cash value. It combines
all the characteristics of a universal life and variable life policy the variable component in
the name refers to the ability to invest in separate accounts whose values very. The
universal component in the name refers to the flexibility the order has been making
payments.
The insuring clause - ANS-The insurers basic promise to pay specific benefits if I
benefits to a designated person in the event of a covered loss.
Consideration clause - ANS-A policy owners consideration consist of completing the
application and pay the initial premium. The amount and frequency of premium
payments are contained in the consideration clause
The entire contract - ANS-The insurance policy itself, any riders and
endorsements/amendments, and the application compromise the entire contract
between all parties. Insurance producers cannot make changes to a policy. The entire
contractors vision is found at the beginning of every life insurance policy issued.
The grace period - ANS-The period of time policy owners are allowed to pay an overdue
premium during which the policy remains in force, usually 30 days.
Reinstatement - ANS-Permits the policy owner to reinstate a policy that has lapsed, as
long as the policy owner can provide proof of insurability and pays all back premiums,
outstanding loans and interest.
In contestable clause - ANS-Prevents the insurer from denying a claim or avoiding a life
insurance policy, except for nonpayment of premium's, after the policy has been
divorced for two years.
Miss statement of age or sex - ANS-Allows the insured to adjust the policy benefits if the
insured's age or sex is Miss stated on the policy application.
Policy loan provisions - ANS-Any loans with interest due at the time of death will be
deducted from the insurance policy proceeds.
Assignment clause - ANS-Absolute assignment is when the assignee receive full control
of the policy and rights to the policy benefits. A collateral assignment is the partial and
temporary transfer of rights.
Free look - ANS-The policy owner is permitted a certain number of days once the policy
is deliver to look over the policy and return it for a full refund of all premiums paid
Term life - ANS-Insurance provides pure death protection since it only pays a death
benefit if the insured dies during the policy term. Term life insurance does not accrue
cash value
Whole life - ANS-Insurance provides death benefits for the entire life of the insured. It
also provides living benefits in the form of cash values. It matures at age 100
Group life - ANS-Coverage is provided to the members of the group under the master
contract. The group is written as a whole, not on each individual member. One of the
benefits of group life coverage is there usually is no evidence of insurability required.
Level term - ANS-Also called level premium level term, has a level face amount and
level premiums. Premiums tend to be higher than annual renewable term because they
are level throughout the policy period. However, the premiums will increase at each
renewal.
Decreasing term - ANS-Term life insurance that provides a decreasing face amount
overtime with six premiums. These policies are usually use for mortgage protection
Increasing term - ANS-Term life insurance that provides an increasing base of Mount
overtime based on specific amounts or a percentage of the original face amount.
Convertible term - ANS-A term life policy that allows policy owners to convert their term
insurance into permanat policy without showing proof of insurability.
Renewable term - ANS-A feature of term insurance allows the policy owner to renew
that coverage after the designated term expires without having to prove insurability
Annual renewable term - ANS-Term coverage that provides a level face amount that
renews annually. This type of coverage is guaranteed renewable annually without proof
of insurability
Whole life insurance - ANS-Provides both living and death benefits. Provides permanent
life insurance protection for the insureds entire life. It also provides living benefits such
as c
Advantages of whole life insurance - ANS-It covers the entire life of the insured.
Provides living benefits or cash value policy loans and Fixed premiums
Drawbacks of whole life insurance - ANS-Protection is more expensive because of living
benefits and premium paint. May extend beyond the income you're earning years
There are several types of whole life insurance such as - ANS-Straight whole life.
Limited pay whole life. Single premium whole life. Modified whole life. Graded whole life
Straight life - ANS-This is basic whole life insurance with a level face amount and fix
premiums payable over the insured entire life. Premium payments made until death of
insured or age of 100
Limited pay life - ANS-This is whole life insurance for the insured is covered for his
entire life but premiums are paid for a limited time. As the premium payment. Shortens,
cash values increase faster [Show Less]