Type of Life Policies

Temporaty protection. Only provide coverage for the term of years that is specified in the contract. Pure death protection. There is no cash values.

Allows the policyowner the right to renew the coverage at the expiration date without evidence of insurability. The premium for the new term policy will be based on the insurad's current age.

Provides the plicyowner with teh right to convert the policy to a permanent insurance policy without evidence of insurability. The premium will be based on the insured's attained age at the time of conversion.

Death benefit does not change throughout the life of the policy. Can take the form of Annually Renewable Term (premium increase each year with the age of the insured). Insured does not have to prove insurability. The annual premium ramains level throughtout the life of the policy. Of the three primary types of term insurance sold, level term has the Highest Premiums.

Level premium. Death benefit decreases each year over the duration of the policy term. Example: to protect a mortgage. Usually convertible. Usually not reneawble.

Level premium. Death benefit increases each year over the duration of the policy. Often used by insurace companies to fund certain riders that provide a refund of premiums or a gradual increase in total coverage, such as the "cost of living" or "return of cash value" riders.

Level premium for the life of the insured. Level guaranteed death benefit. At 100 face amount paid to insured. If insured and policyowner are two different people, face value still goes to insured. Builds cash value, by law no later than the end of third policy year. Has lowest annual premium.

Level annual premium. Level, guaranteed at 100. Endows for face amount at 100. Premiums for coverage paid-up well before 100. Higher annual premium than straight life.

Level death benefit at 100 for a one time, lump sum payment. Face amount by IRS must be 100% to 250% the cash value. Rate of return usually guaranteed from 1 to 5 years. After adjusted to insurer discretion or according to a formula, never fall below guaranteed minimun. Surrerder charge generally in effect for 7 to 10 years on a diminishing basis.

Insure two or more. Can be term, or permanent. Most commonly found as joint whole life. Premium based on a joint average age.Death benefit paid upon first death only.

Also referred as "second to die" or "last survivor." Same as joint life but, pays on the last death. Life expectancy is extended so lower premiums.

Also known as Current Assumption Life. Fixed premium. Credits cash value with current (nonguaranteed) interest rate, comparable to money market rates. Provides for a minimum guaranteed rate of interest. Policyowner allow to pay extra towards premium.

Best of both worlds (term and permanent coverage). Insured determines how much coverage, and how much premium. Policyowner allow to, increase or decrease premium. Change premium-paying period. Increase or decrease face amount. Change period of protection. Option of converting from term to whole or vice versa. Increasing death benefit or lowering premium usually requires proof of insurability. Policyowner may pay additional premium. Loan, reinstatement, nonforfeiture, ans settlement options. Cash value develops when premiums are more than the cost fo the policy.

Death benefit can be increased or decreased. Premium can be increased and decreased, or even skipped if sufficient cash value to cover it. Two components: insurance,a nd cash account. Insurance annual renewable term insurance. Cash accumulates tax defferred, and earns guaranteed contract rate or current rate, whichever is higher. Allows partial withdrawal of cash value. There may be a charge, and interest earned on cash may be subject to tax. Level Death Benefit: increase at later time cuz IRS. Increasing Death Benefit: Death benefit = face amount + cash value.

Fixed premium with an underlying investment account. Policyowner may allocate the premium in the insurance separte account. Designed to serve as a hedge agoinst inflation. Policyowner assume risks of investments. Agent mus hold a secuities license, in addition to life.

Conbination of universal life and variable life. Like universal, offers flexible premium and death benefits. Like variable offers policyowner decides where to invest. Cash value not guaranteed, and death benefit not fixed. Death benefit generally cannot decrease below initial face amount. Agent needs Securities and life license.

Not longer sold in USA. Another type of whole life. Level death protection, and acumulate cash. Premium can be paid as a lump sum. Matures at earlierlage. Premium more expensive.

Provides income for a specific period of time. Has nonforfiture value (acumulation value), which can be withdrawn prior to annuitiztion date. May be a charge if done within 10 years. Earns intereste tax deffered.

Single payment (lump sum).

Premiums paid in installments over a period of time. Can be either level, in which the owner pays a fixed installment, or can be flexible, in which the amount and frequency of each installment varies.

Single lump sum. Income payments start within one year from purchase.

Either purchased with single lump sum, or through periodic payments. Most deferred are back end loaded. Means whe fund are borrowed or surrenderd they come out on a last-in-first-out basis. The income payments begin sometime after one year from purchase.

Guaranteed minimun rate of interest. Income (annuity) payments that do not vary from one payment to the next. Insurance company guarantees the dollar amount for each payment, and the lenght of payment period is determined by the settlement option chosen by annuitant. Annuitan knows exactly how much will receive. Premium investe in the insurance company general account, which is comprised mostly of conservative investments. Inflation may erode purchasing power.

Varying rates of return. Investment may be subject to variation. Hedge against inflation. Invested in securities. Invested in insurer's separte account which is usually common stocks. Premium purchase accumulation units, similar to buying shares. Upon annuitization are converted to annuity units. The number of units ramain level, but unit values flutuate. Minimum interest rate not guaranteed. Insurer guarantees mortality and expenses.

Not secutities. Invest on a relatively aggressive basis to aim for higher returns. has a guaranteed minimum interest rate. Insurance comanies generally reserve the initial returns and pay the excess to annuitant. Less risky than a variable annuity, but expected to earn higher interest rate than fixed annuity.

Insurance company cannot cancel the policy, nor can the premium be increase. Insured has the right to renew, usuallly till 65

Usually. drug and alchohol dependency, acts of war, self-inflicted injuries, and non-organic mental conditions. Alzheimer's, dementia and parkinson's are covered.

The insurer's promise to pay the death benefit upon the insured's death. Usually located in policy face page.

The best way for an underwriter to evaluate an insured's medical history. Includes past diagnoses, treatments, lenght of recovery, and prognoses.

Apply only if the insured cannot find any means of income whatsoever.

If the person cannot perform the job for which is trained.

Loan againts the policy cash value for the amount of premium. Insurer will be charge interest. Must be honored immediately.

Waiting period from disabilty till benefit are paid. Longer elimination perido translate into lower premium

7 days weekly pay policies. 10 days for monthly pay policies. 31 days for all other modes.

Is a mandatory provision required by law.

A specified dollar amount beyond which the insured no longer participates in the

Usually not covered.

To qualify: Person must be under age 65, fully insured under SS, suffer a disablement expected to last at leat 12 months.

Accidents will be covered immediately following reinstatment. Sickness covered after 10 days.

Care provided for functionally impaired adults on less than 24 hour basis.

At least 12 months of creditable coverage. May come from multiple employers, as long as there are no gaps over 63 days.

Usually specify the benefits based on a % of the worker's income. Short term plans usually provide maximum benefit of 13 to 26 weeks. Monthly benefits usually to 60% of individual's income. Some limit coverage to only nooccupational disabilties.

Insurer can increase the policy premium on the anniversary date. The insured has teh unilateral right to renew for the life of the contract. The insurer may increase premium on the class basis only.

The owner has no rights of renewal. Must purchase another policy.

Attached for the purpose of eliminating coverage for a specifically defined pre-existing condition. Insurance company will no charge exta for this rider.

Proof of loss under a health insurance policy normally should be filed within 90 days of a loss.

Tow or more family members can satisfy a common deductible in a given year.

Irsuerer uses policy cash to convert to term insurance for the same face amount as the former policy, For as long a period as the amount of cash value will purchase. Has the highest amount of insurace protection.

Policyowner simply surrenders the policy for the cash at a time when coverage is not longer needed or affordable.

The policy cash value is used as a single premium to purchase a completely paid up permanent policy that has a reduced face amount. The new policy builds its won cash value. Provides coverage for the longest period of time.

Each surgical procedure will be assigned a number of points, each point has a conversion factor or dollar value.

Period of time after a policy is in effect before claims are covered

Waives policy premium, and allow the insured to receive a weekly or monthly icome.

Retirement, Disability, and Survivors.

Will not cover hearing aids, dental care, or well person care.

Take it or leave it.

Waive payment of premium if parent or guardian become disabled for at leat 6 months or dies until minor reaches 21.

The insured is not required to pay a deductible.

Certain guarantees built into the policy that cannot be forfeited by the policywoner. Are required by law to be included in the policy. A table showing them for a minimum of 20 years must be included in the policy.

Is transferring all or a part of the death benefit to another.

The difference between the employee's present earnings and what they were prior to disability.

Offer members the greatest choice of physicians.

Guarantees an income for two or more recipients for as long as they live

All insurers must obtain it before transacting insurance withing a given state.

Funds not paid out after paying claims and other operative cost are returned to the policyowner in the form of a dividend.

Must be provided within 20 days of receiving the written communication of replacement.

Premium paid by the employer is deductible as a business expense. Benefits are recibed income tax free by the employee.

Medical and rehabilitation, income benefits, death benefits.

No legal action to collect benefits may be started sonner than 60 days after the proof of loss is filed with the insurer.

Absolute: the entire policy. Collateral: part or all the benefits.

Controlled access to providers, comprehensive case management, risk sharing, preventive care, and high-quality care

Missrepresentation that persuades an insured/owner, to his or her detriment, to cancel, lapse, or switch policies from one to other.

An agent who handles insurer funds in a trust capacity.

On the life of a debtor, made in connection with a specific loan or other credit transaction.

No one may funcion as an administrator without it.

Insurers who meets the state's financial requirements and are approved to transanct in the state.

Incorporated without capital sotck or shares.

The information is obtained through an investigation and interviews with associates, friends and neighbors of the consumer.

Interest rate. Underlying investment. Licensing requirements.

Bond accounts. Growth stock. Money market accounts. Real estae. Balanced fund account.

Level term polices maintain Level Death Benefits (or face amount) throughout the term of the policy.

Dividends are a return of unused premiums on which the insured has already paid taxes. Any interest earned is taxable as ordinary income.

The insurer simply sends the policyowner a check for the amount of the dividend as they are declared, usually annually.

65% of the high-deductible plan for individuals or 75% of the family deductible. Non-qualified distributions have a 15% penalty tax.

Attempts to provide subscribers with a choise of health care provider while effecting some cost-savings by contracting with providers for such services.

Provides relief to the faimily care giver. Can be someone coming to the home while the care giver takes a nap, or goes out for a while.

Specifies to whom claims payments are to be made. All benefits are payable to the insured while he or she is living.

Required insureds to use specific healthcare providers and hospitals, except in emergency situations. In return, the insured pays lower premium amounts.

The dividend is used to purchase a one-year term insurance in the amount of the cash value.

The insurance company will pay an amount for a given procedure based upon the average charge for that procedure in that specific geographic area.

Contains restricted network provisions that conditions the payment of benefits, in whole or in part, on the use of network providers.

In an insurer agrees to reinstate a policy, it will specify what the insured must do to reinstate the policy.

If an insurer wishes to contenst any staments on a application, they mus do so within the first two years.

The aplicant must experience a financial loss when the insured is hurt or sick.

The dividends are used to purchase a single premium, additional permanent policy.

Spells out the insured's duty to provide teh insurer with a reasonable notice in the event of a loss.

Allows the policyowner to apply policy dividends towared the nest year's premium.

Rate paid, usually monthly, to a health care provider. In return, the provider agrees to deliver the haeath services agreed upon to any covered member of the HMO.

Allows an insurer to send teh policyowner an annual, nontaxable check.

Incorporated insurers without capital stock or share.