Nevada Life & Health Insurance Questions and Answers well Explained Latest 2024/2025 Update 100% Correct.
7 views 0 purchase
Course
Nevada Life & Health Insurance
Institution
Nevada Life & Health Insurance
indexed whole life - cash value is dependent upon the performance of the equity index although
there is a guaranteed minimum interest rate
universal life (flexible premium adjustable life) - policyowner has the flexibility to
increase/decrease amount of premium paid into policy; policyowner may ...
Nevada Life & Health Insurance
indexed whole life - cash value is dependent upon the performance of the equity index although
there is a guaranteed minimum interest rate
universal life (flexible premium adjustable life) - policyowner has the flexibility to
increase/decrease amount of premium paid into policy; policyowner may skip paying a premium and
policy will not lapse as long as there is sufficient cash value at the time to cover monthly deductions for
cost of insurance
permanent life insurance - general term used to refer to various forms of life insurance policies
that build cash value and remain in effect for the entire life of the insured (or until age 100) as long as
premium is paid
term insurance - temporary protection because it only provides coverage for a specific period of
time
face amount - death benefit
3 basic types of term coverage - level, increasing, decreasing
- based on how the face amount changes during the policy term
What is the premium in term insurance? - regardless of type of term insurance purchased,
premium is level throughout the term of policy
level term insurance - death benefit does not change throughout the life of the policy
annually renewable term - premium increases annually according to the attained age, guaranteed
to be renewable each year
,decreasing term - level premium and death benefit that decreases each year over duration of the
policy term
increasing term - level premium and death benefit that increases each year over the duration of
the policy term
return of premium life insurance - an increasing term policy that pays an additional death
beneficiary equal to the amount of the premiums paid
- return of premium is paid if the death occurs within a specified period of time or if the insured outlives
the policy term
renewable provision - allows the policyowner the right to renew coverage at the expiration date
without evidence of insurability
convertible provision - provides the policyowner the right to convert the policy to a permanent
insurance policy without evidence of insurability
nonforteiture value - aka cash value, does not usually accumulate until the third policy year and it
grows tax deferred
key characteristics of whole life insurance - - level premium
- death benefit
- cash value
- living benefits
3 basic forms of whole life insurance - 1. straight (ordinary) whole life
2. limited-pay whole life
3. single premium whole life
, straight life - basic whole life policy; policy owner pays the premium from the lime the policy is
issued until insured's death or age 100
- has lowest annual premium
limited-pay whole life - designed so that premiums for coverage will be completely paid-up well
before age 100
- cash value builds up faster
single premium whole life - designed to provide a level death benefit to the insured's age 100 for
a one-time, lump-sum payment
- generate immediate cash value
adjustable life cash value - only develops when the premiums paid are more than the cost of the
policy
universal life premium types - 1. minimum premium: amount needed to keep policy in force for
year
2. target premium: recommended amount to keep policy in force for lifetime
2 death benefit options for universal life - 1. Option A
2. Option B
Option A (Level Death Benefit option) - death benefit remains level while cash value gradually
increases, lowing the "pure insurance" with insurer in later years
- death benefit increases near the end in order to maintain gap between cash value and death benefit in
life insurance policy
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ACADEMICMATERIALS. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
