term insurance

How much cash value does a term policy have

None

What is another word for term insurance

Temporary insurance

Which kind of term insurance is never renewable

Decreasing term insurance

Which type of term insurance is only offered as a rider

Increasing term insurance

If the death benefit of a policy declines over a coverage period until it reaches zero at the end of a specified time what kind of insurance is it

Decreasing term policy

If the death benefit of a policy begins near zero and grows over a specific time of coverage, what kind of policy is it

Increasing term policy

If you have an insurance policy that only lasts for 10 years and has a level premium, what kind of policy is it

A level term policy

What happens to the premium in a decreasing term policy

It stays level throughout the life of the policy

What happens to the premium for an increasing term policy

The premium increases throughout the life of policy

If you have a term policy and you are still alive at the end of the term and are refunded for all or part of the premium paid for the policy, what kind of policy is it

A return of premium term policy

What are some key factors of a return of premium term policy

They cover for a shorter term, they have a higher premium than any other term policy, 100% return of premium policy will have a higher premium than a 50% return of premium policy

What is the renewability feature

Guarantees that a term policy will renew without reapplying or qualifying medically for coverage

If you have a 5-year renewable term policy, how long does the renewal last for

5 years a renewable policy will always renew for the same amount of time as the original policy was written

True or false? The renewability feature guarantees the same amount of death benefit at the same premium as the original policy

False. The death benefit will remain the same. However, the premium for the renewal. Will increase based on the insurers attained age

When a policy renews and the premium goes up the payment of the higher premium each renewal is called what

A step rate premium

What is A.R.T

Annual renewable term

When do renewable term policies expire

At the age specified in the policy

What is the first rule of the convertibility feature

Conversion is always term to permanent insurance

If a term policy has a convertibility feature and the owner wants to convert to a permanent policy, do they have to provide evidence of insurability

No, they do not have to provide evidence of insurability or submit an application for the conversion

What is the reason that conversion is always term to permanent

Because term policies have zero cash value, but permanent policies have a cash value that cannot be converted

How is the premium for a converted policy determined

There are two ways the premium for a converted policy can be determined. One is based on attained age. The other is based on the original age

If the premium for a converted policy is based on the original page, what is required from the policy owner

A lump sum down payment that equals what the cash value would have been if a permanent policy was originally purchased