Types of Life Policies

All types of Life Policies listed in the ExamFX course

Term Life Policies

Simple Temporary Insurance that lasts for a specified amount of time.

No cash value or other monetary benefits besides death benefit

Level, Decreasing, and Increasing Term

Level Term Policies

A Term life insurance with a constant death benefit

Decreasing Term Policies

A Term life insurance with a decreasing death benefit

Increasing Term Policies

A Term Insurance with an increasing death benefit

Renewable Term Provision

A Term insurance provision that is renewed after a specified set of years

Death benefit will stay level but the premiums will increase with each renewal

Convertible Term Provision

A Term insurance provision that allows a Term insurance policy to convert to a Whole life policy

Permanent/Whole Life Policies

Permanent Insurance that lasts until age 100

Death Benefit, Cash value, and Living benefits

Single Premium Whole Life

A Whole Life Insurance that is payed for in one premium payment

Limited Pay Whole Life

A Whole Life Insurance that pays premiums only up to a certain date

Straight Life / Continuous Premium

A Whole Life Insurance that pays premium up until death or age 100

Flexible-premium Life Insurance

An insurance plan that can change between Term or Whole Life

Can adjust premium amounts, coverage, and period of time

Universal Life Insurance

A flexible premium insurance plan that can adjust the premium

Option A and Option B

Option A

Universal Life policy with a level death benefit that only increases to maintain the IRS Corridor

Option B

Universal Life policy with an increasing Death benefit

Variable Life Insurance

Permanent Insurance with fixed premiums and cash value based on investments

Joint Life Insurance (first to die)

Pays out death benefit on first death

Survivorship Life Insurance (second to die)

Pays out death benefit on second/last death