Life, health, disability, and property insurance concepts tested on the CFP insurance planning domain.
39 cards · basic cards · AI-written, checked twice. Edit anything.
- What is term life insurance?
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Insurance providing death benefit coverage for a specified period (term), with no cash value; coverage ends at term expiration.- What is whole life insurance?
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Permanent life insurance providing lifetime death benefit coverage and accumulating a cash surrender value.- What is universal life (UL) insurance?
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Flexible permanent insurance with adjustable premiums and death benefits, and a cash value account credited with interest.- What is variable life insurance?
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Permanent insurance whose cash value is invested in subaccounts (stocks, bonds), fluctuating with market performance.- What is variable universal life (VUL) insurance?
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Combines variable life's market-linked cash value with universal life's flexible premiums and death benefits.- What is convertible term insurance?
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Term policy allowing the insured to convert to permanent coverage without medical underwriting before conversion deadline.- What is renewable term insurance?
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Term policy allowing renewal for another term at the end, without new medical underwriting, though premiums increase.- What is level term insurance?
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Term life insurance with constant death benefit and level premiums throughout the policy term.- What is decreasing term insurance?
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Term insurance where the death benefit decreases over time while premiums remain level.- What is the contestability period in life insurance?
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Typically 2 years from issuance, during which the insurer may contest the policy based on material misstatements.- What is insurable interest in life insurance?
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The financial interest a person has in another person remaining alive, required to prevent wagering contracts.- What is a health insurance deductible?
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The amount an insured must pay out-of-pocket before the insurer begins to cover eligible expenses.- What is the difference between a copay and coinsurance?
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Copay is a fixed dollar amount per service; coinsurance is a percentage of the allowed cost the insured pays.- What is an out-of-pocket maximum in health insurance?
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The maximum annual amount an insured must pay in deductibles, copays, and coinsurance before coverage becomes 100%.- What is a PPO (Preferred Provider Organization)?
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A health plan offering in-network providers at lower costs and out-of-network providers at higher costs; referrals not required.
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