What is flexible premium adjustable life policy?

What type of life insurance offers flexible premiums?

Universal life insurance is a type of permanent life insurance that offers flexible premiums and coverage, with the ability to accrue cash value inside the policy.

What is a disadvantage to a credit life insurance policy?

Credit life insurance also lacks flexibility for the death payout. A payout goes directly to the lender. Since your family doesn't receive the money, they don't have the option to use the funds for other purposes that might be more urgent.

How often can adjustments be made to adjustable life insurance?

The insurer also correspondingly adjusts the premium payment plan upwards. In other policies, the insured has the option to periodically (e.g., every three years) increase the face amount by the change in the CPI since the last adjustment period.

Which statement concerning an adjustable life insurance policy is false?

Which statement concerning an adjustable life insurance policy is FALSE? Initial premium is lower than for an equivalent amount of term insurance -Correct. The initial cost of whole life insurance is actually HIGHER than an equivalent amount of term insurance.

What type of life policy has a death benefit that adjusts periodically?

A decreasing term policy has a death benefit that adjusts periodically and is written for a specific period of time.

What is a disadvantage of flexible premium annuity?

What Are the Disadvantages? The annuity company may limit contributions during the accumulation phase, when the money in the annuity is growing with interest. Aggressive investors may not reach their goal if their annuity has a contribution cap. Also, your annuity's growth requires consistent payments.

How does a flexible premium annuity work?

A flexible premium deferred annuity lets you fund your annuity with multiple premium payments. ... You make one initial premium payment, then additional payments at your own pace. There are no scheduled payments. The money in the annuity grows as you make new premium payments and accumulate interest.

What is a flexible annuity plan?

A flexible premium annuity is an annuity that is intended to be funded by a series of payments. Flexible premium annuities are only deferred annuities; that is, they are designed to have a significant period of payments into the annuity plus investment growth before any money is withdrawn from them.

Can you cash out an adjustable life insurance policy?

You can also use the adjustable life insurance policy's cash value to pay a part or the entirety of premiums, making your payments flexible over time. ... An adjustable life insurance policy's cash value can be used as: Surrender value: You can cancel a life insurance policy and give it back to the insurer.

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.

Does a universal life policy have cash value?

Universal life policies build cash value, with gains growing tax-free. And there may be flexibility to adjust your premium payments and death benefit, depending on the policy.

What can be changed in an adjustable life insurance policy?

Policyholders are permitted to make changes to key features of their policy within limits. They may increase or decrease the premium, increase or decrease the face amount, extend or shorten the guaranteed protection period, and extend or shorten the premium payment period.

At what point are death proceeds pain in a joint life insurance policy?

At what point are death proceeds pain in a joint life insurance policy? A joint life policy cover two or more lives and provides for the payment of the proceeds at the death of the first among those insured, at which time the policy terminates.

Which of the following policies is characterized by a flexible premium and death benefit?

Universal life insurance is essentially a term policy with cash value, characterized by flexible premiums and an adjustable death benefit. Part of the premium goes into an investment account that grows and earns interest. You are able to borrow or withdraw your cash value.

Is credit life insurance a decreasing term?

Credit life insurance is associated with a diminishing face value. With most credit life insurance, the policy's face value steadily decreases over time as you pay off the loan. Essentially, you'll be paying the same premium rate for less and less coverage as time goes by.

Who is the beneficiary of a credit life policy?

Credit life insurance policies are designed to pay off a specific debt after you die. The beneficiary of credit insurance is your lender. Credit life policies do not require a medical exam or questionnaire. A term life insurance policy is a more affordable and flexible way to protect your loved ones financially.

What type of insurance policy is most commonly used in credit life insurance?

Credit life insurance and credit disability insurance are the most commonly offered forms of coverage. They also may go by different names. For example, a credit life insurance policy might be called "credit card payment protection insurance," "mortgage protection insurance" or "auto loan protection insurance."

How does adjustable Complife work?

Adjustable Complife is a combination of participating, permanent, whole-life insurance and term insurance. The whole-life portion pays annual dividends, which are used to purchase additional permanent insurance to replace the term insurance.

What are the 3 types of life insurance?

There are three main types of permanent life insurance: whole, universal, and variable.

What are the 4 types of life insurance?