Core life and health insurance policy vocabulary tested on state licensing exams.
41 cards · basic cards · AI-written, checked twice. Edit anything.
- What is term life insurance?
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Life insurance that provides coverage for a specified period, with no cash value, and coverage ends if the policy lapses.- What is whole life insurance?
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Permanent life insurance that provides lifetime coverage, builds cash value, and requires level premiums throughout life.- What is universal life insurance?
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Permanent life insurance with flexible premiums and death benefit, where the policy's cash value earns interest based on current rates.- What is variable life insurance?
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Permanent life insurance where the cash value and death benefit vary based on performance of underlying investment accounts selected by the policyowner.- What is a renewable term policy?
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A term life policy that can be renewed for another term without evidence of insurability, though premiums increase.- What is a convertible term policy?
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A term life policy that can be converted to a permanent policy without medical underwriting during a specified conversion period.- What is level term insurance?
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Term life insurance where both the death benefit and premium remain constant throughout the term period.- What is decreasing term insurance?
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Term life insurance where the death benefit decreases over time while the premium remains constant.- What is the face amount or face value of a policy?
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The death benefit amount paid to the beneficiary upon the insured's death.- What is the grace period in an insurance policy?
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A period (typically 30 or 31 days) after a premium payment is due during which the policy remains in force even if the premium is not yet paid.- What does the incontestability clause do?
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A provision stating the insurer cannot cancel a policy or deny a claim based on misstatements in the application after the policy has been in force for a specified period, usually 2 years.- What is the suicide clause?
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A provision stating the insurer will not pay the death benefit if the insured commits suicide within a specified period (usually 2 years), instead returning premiums paid.- What is a beneficiary?
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The person or entity designated to receive the death benefit or policy proceeds upon the insured's death.- What is insurable interest?
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The legal right or financial relationship an applicant has that would cause them to suffer a loss if the insured person dies.- What is the contestability period?
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The time period (typically 2 years) during which an insurer can contest claims or deny coverage based on material misstatements in the application.
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