Which of the following is not a characteristic of term life insurance?
Asked by: Werner Wilderman | Last update: September 1, 2022Score: 4.8/5 (27 votes)
All of the following are characteristics of term insurance, EXCEPT: Term policies do not accrue cash value. They only provide death protection. Premiums increase as the policy is renewed, and the death benefit is only paid out if the insured dies during the policy term.
What is a characteristic of term life insurance?
Here are the main characteristics of term life insurance: Temporary insurance protection. Low cost. No cash value. Usually renewable.
What are the characteristics of level term insurance?
- Features of a Level Term Policy.
- Premiums Don't go up or Down.
- Death Benefit Stays the Same.
- The Coverage Expires.
- No Cash Value.
- Why People Purchase Level Term.
- Alternatives to Level Term.
- Shopping for the Right Policy.
Which of the following is a downside of term life insurance quizlet?
Disadvantages of term insurance are: premiums that increase and become unaffordable in later years. the need for coverage may exist after the policy expires. no cash value accumulates during the policy period.
What is a term life insurance policy?
A term life insurance policy is the simplest, purest form of life insurance: You pay a premium for a period of time – typically between 10 and 30 years – and if you die during that time a cash benefit is paid to your family (or anyone else you name as your beneficiary).
characteristics of term life insurance
Which of the following best describes term life insurance?
Correct option is (B) The insured pays a premium for a specified number of years. The following best describes term life insurance: The insured pays a premium for a specified number of years.
What are the four types of term insurance?
Term insurance plans, too, come in various forms. Namely, level term insurance, increasing term insurance, decreasing term insurance, the return of premiums plans, and convertible term plans.
Which of the following is the key characteristic of term life insurance quizlet?
Term life insurance provides pure death protection (pays a death benefit only). Whole life insurance (permanent protection) provides life insurance for the entire life of the insured. It also is said to provide a living benefit because it accrues cash value, which is available to the policy owner.
Which of the following is not a type of life insurance policy?
From the given alternatives term isurance is not a type of life insurance product. Term life insurance, often known as term assurance, is a type of life insurance that offers coverage for a set period of time (the applicable term).
Which of the following is not one of the three objectives of planning for the later years of life insurance?
Which of the following is NOT one of the three objectives of planning for the later years of life insurance? D Retirement Objective Correct!
What are the benefits of term life insurance?
Term life insurance offers temporary financial protection — usually five to 30 years — for a low, fixed cost. This type of life insurance is best for meeting short-term financial needs, like paying off debts, replacing your income, covering childcare costs and funding your child's education.
What is the meaning of term insurance?
Term insurance is the simplest and purest form of life insurance. It provides financial protection to your family at the most affordable rates. With term insurance, you can get a large amount of life cover (i.e. sum assured) at a relatively low premium rate.
What are the characteristics of life insurance contract?
- Nature of General Contract.
- Insurable Interest.
- Utmost Good Faith.
- Warranties.
- Proximate Cause.
- Assignment and Nomination.
Which of the following is not a component of an insurance policy premium?
Which of the following is NOT a component of determining policy premiums? Dividends are not a component when determining policy premiums.
Which of the following is not true about term life insurance?
Which of the following is not true about term insurance? Term insurance does NOT build any cash value. While age is not the only consideration, premiums are generally lower for younger insureds. The correct answer is: Term insurance builds cash value.
Which of the following is not a function of insurance?
The functions of insurance are risk sharing, assisting in capital formation, economic progress, etc. Lending of funds is not a function of insurance.
What are Non-Life Insurance policies?
General insurance, property insurance and casualty insurance are other names of non-life insurance. It can be defined as any insurance that is not related to life insurance. People, legal liabilities and properties are covered under a non-life insurance policy.
Which of the following is not a true characteristic of permanent protection whole life?
Which of the following is not a true characteristic of permanent protection Whole Life? Flexible premiums are not a characteristic of a Whole Life Insurance Policy. A decreasing term policy has a death benefit that reduces over a defined number of years, but the premium remains the same in all years.
Which of the following are characteristics of a universal life insurance policy?
Flexible Benefits, Payments and Terms
With whole life insurance, premiums are fixed, cash values and death benefits are guaranteed, and all the policyholder has to do is make the monthly premium payments. Universal life insurance is more complex than whole life insurance, but also more flexible for the policyholder.
What are the characteristics of whole life insurance quizlet?
Whole life insurance features more guarantees than any other form of permanent life insurance available today. It provides guaranteed death benefit protection for the insured's whole life. No matter when the insured dies, the policy pays the face amount stated in the policy.
What are the three main type of term insurance?
There are three main types of life insurance: whole life, universal life, and term life insurance. In each of the three broad types, there are many variations of each but we will take a look at the broad categories while pointing out a few of the finer points of each type.
What are the 3 main types of life insurance?
Whole life insurance, universal life insurance, and term life insurance are three main types of life insurance.
Which of the following is not a type of general insurance?
Life Insurance is not a type of general insurance.
What is Direct term life insurance?
Direct term is a kind of term life insurance policy, which covers you for a specific length of time (usually 10 to 30 years). If you die while the policy is active, your family receives a cash payout based on your coverage amount that they can use to cover any short- or long-term financial needs.