Nevada Life Insurance Exam- Policy types and Riders

Term Life insurance

specific period, pays benefit if insured dies during coverage, no cash value

whole life insurance

permanent coverage, fixed premiums and guaranteed cash value schedule

universal life insurance

flexible premiums and death benefits, cash value component affected by credited interest and policy charges

variable life insurance

cash value/benefits depend on investment performance, variable products, policy owner investment risk

decreasing term

death benefit decreases over time; premiums remain level

credit life

insurance pays off borrowers debt if he dies

adjustable life

certain features are adjustable

indexed universal life

interest crediting linked to performance of market index

joint life insurance

one policy 2+ people, pays death benefit when 1st insured dies

survivorship life insurance

type of joint insurance, pays when last insured dies

waivers of premium

waives qualifying premiums if insured meets riders disability requirement

accidental death

provides additional death benefit for covered accidental death

guaranteed insurability

allows additional coverage at specific times with out new evidence of insurability

payor benefits

Commonly waives premiums on a juvenile policy if qualifying payor dies or is disabled

accelerated death benefits

allows access to some death benefit when living if qualifications are met

term rider

adds term insurance coverage to policy

cost of living rider

increases coverage to help address inflation