Missouri Life Insurance Study Guide: Understanding Different Types of Life Insurance, Exams of Nursing

Download Missouri Life Insurance Study Guide: Understanding Different Types of Life Insurance and more Exams Nursing in PDF only on Docsity! Missouri Life Insurance Study Guide 2024 Term life Correct Answer is 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 Correct Answer is 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 Correct Answer is 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 Correct Answer is 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 Correct Answer is Term life insurance that provides a decreasing face amount overtime with six premiums. These policies are usually use for mortgage protection Increasing term Correct Answer is 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 Correct Answer is A term life policy that allows policy owners to convert their term insurance into permanat policy without showing proof of insurability. Renewable term Correct Answer is 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 Correct Answer is 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 Correct Answer is 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 Correct Answer is It covers the entire life of the insured. Provides living benefits or cash value policy loans and Fixed premiums Drawbacks of whole life insurance Correct Answer is 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 Correct Answer is Straight whole life. Limited pay whole life. Single premium whole life. Modified whole life. Graded whole life Straight life Correct Answer is 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 Correct Answer is 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. Single premium life Correct Answer is Allows the insured to pay the entire premium in one lump sum and have coverage for the insureds entire life Modified whole life Correct Answer is Low premiums in the early years and jumps to a higher premium in the later years and remains fixed thereafter. Premiums increased just once. Grated whole life Correct Answer is Starts out with a low premium then has a slight increase yearly for a set period of time. Premiums then level off for the remainder of the policy. Joint life policy Correct Answer is A policy that covers two or more people. The age of the insureds our average in a single premium is charged. It uses permanent insurance and pays a definite that when one of the insureds dies. Joint and survivor policy Correct Answer is Also known as the second to die policy. This plan covers two lives, but the benefit is paid upon the death of the last surviving insured. provision is to protect the insurer against the purchase of a policy in a contemplation of suicide. Non-forfeiture options Correct Answer is When he policy owner decides he does not want his life insurance policy anymore, he has the option to surrender his policy. If there is cash value remaining he must use one of the following non-forfeiture options. Accelerated benefit rider Correct Answer is Allows the insured to receive a portion of the death benefit prior to death if the insured has a terminal illness and is expected to die within 1 to 2 years. Guaranteed insurability rider Correct Answer is Permits the policy owner to buy additional permanent life insurance coverage at specific points of time in the future without submitting proof of insurability. The automatic premium loan writer Correct Answer is Allows the insurance company to deduct overdue premium from an insurance cash value if payment is missed on a life policy. Fixed period with benefits Correct Answer is Also called. Certain. The fix. Option is when the insurance pays proceeds including interest and principal and a minimum guarantee dollar payment over a specific number of years. Fixed amount Correct Answer is The fixed amount installment option pays a fixed death benefit and specific Stallmans amounts until the proceeds are gone. The larger the installment payment the shorter the payout Period. Premiums Correct Answer is Are not tax-deductible Death benefit Correct Answer is Tax-free if taken as a lump sum to a named beneficiary Death benefit installments Correct Answer is The principle is tax-free and interest is taxable Revocable beneficiary Correct Answer is The policy owner may change the beneficiary at any time without notifying or getting permission from the beneficiary Irrevocable beneficiary Correct Answer is An era vocable designation may not be changed without the written consent of the beneficiary. That your revocable beneficiary has a vested interest in the policy, therefore the policy owner may not exercise certain rights without the consent of the beneficiary Rebating Correct Answer is Includes rebating premiums, any special favor or advantage in the dividends or the benefits not specified in the contract. Giving or selling stocks bonds or other securities as inducement to the contract. Misrepresentation Correct Answer is Misrepresentations and falls advertising of insurance policies is making, issuing or circulating any estimate, illustration, circular or statement sales presentation Defamation Correct Answer is Defamation is making any derogatory or maliciously critical remarks, statements or publications about it and sure or financial institution with the intent to harm. Coercion Correct Answer is Intimidation manipulates through the threat of negative result, the loss of a business or denial of coverage.