Which of the following types of policies allows for a flexible premium and variable investment component?
Variable universal life (VUL) is a type of permanent life insurance policy with a built-in savings component that allows for the investment of the cash value. Like standard universal life insurance, the premium is flexible. VUL insurance has investment subaccounts that allow for the investment of the cash value.
Which of the following types of policies pays a benefit if the insured goes blind?
Accidental Death and Dismemberment Insurance. Also known as AD&D, this type of insurance pays out if the insured dies, becomes blind or is dismembered (loses a limb) in a covered accident.
Which type of insurance policy covers the whole life of the policyholder?
Permanent life, often called whole life insurance or cash value life insurance, provides coverage for the insured person's lifetime as long as premium payments are in good standing. Unlike term life, these policies may build cash value, which a policyholder or their heirs can access under certain conditions.
What type of policy has a flexible premium payment?
Universal life insurance policies have flexible premiums. You can change how much you pay each year; though you need to pay a minimum amount or the policy will lapse. Your earnings in a universal life policy can vary based on the specifics of your policy and the interest rates that are credited.
What is a flexible premium variable life insurance policy?
Variable universal life insurance policies have the cash value structure of variable life insurance, but you can use the cash value to pay premiums. You can also pay a larger amount in premiums if you choose to do so. Therefore, these policies are sometimes referred to as flexible premium variable life insurance.
Which of the following policies will provide for a flexible premium and death benefit?
Universal life, a form of permanent life insurance provides policyholders with flexibility on paying premiums, a cash savings component, and a death benefit. Premium costs may change with interest rates and as the policyholder grows older.
What kind of life policy either pays the face?
Endowment insurance provides for the payment of the face amount to your beneficiary if death occurs within a specific period of time such as twenty years, or, if at the end of the specific period you are still alive, for the payment of the face amount to you.
What type of life policy covers two lives in pays the face amount after the first one dies?
A joint life insurance policy covers two people and pays out either after one policyholder dies (first-to-die) or after both policyholders die (second-to-die or survivorship).
What type of insurance are credit policies issued as?
What type of life insurance is credit policies issued as? Credit life insurance policies are most commonly issued as whole life insurance policies. However, they can also be issued as term life insurance policies.
What policy is considered a whole life policy?
What is whole life insurance? Whole life insurance is a type of permanent life insurance, which means the insured person is covered for the duration of their life as long as premiums are paid on time.
What is whole life insurance called?
Permanent life, often called whole life insurance or cash value life insurance, provides coverage for the insured person's lifetime as long as premium payments are in good standing.
What are 4 types of term life insurance?
- Level Term Plans. The default life insurance coverage provided by most insurers in India is a level term plan. …
- Increasing Term Insurance. …
- Decreasing term insurance. …
- Return of Premium Term Insurance. …
- Convertible Term Plans.
What are the 2 types of life insurance policies?
Endowment insurance. Investment-linked insurance policies.