You asked: Which type of insurance has cash value and an investment feature quizlet?

Which type of life insurance typically has a cash value quizlet?

Whole life, variable life and universal life are all types of cash-value life insurance. … Cash-value insurance has higher premiums than term insurance because part of the premium pays for the death benefit coverage and part of it goes toward the policy’s cash value.

What is chosen by the person whose name is on the insurance policy?

A primary beneficiary is a designated individual, chosen by the policy owner, who would receive the proceeds of the insurance policy (the death benefit) if the policy owner dies while covered under the policy. A contingent beneficiary is your back-up.

Which of the following life insurance policies combines term insurance and investment elements?

Variable Universal Life combines investment choices with a form of Term coverage.

Which type of insurance has no savings or investment features?

Term life policies have no value other than the guaranteed death benefit. There is no savings component as found in a whole life insurance product. Term life is usually the least costly life insurance available because it offers a benefit for a restricted time and provides only a death benefit.

IT IS INTERESTING:  Is life insurance mandatory for car loan?

Does term insurance have cash value?

Not every type of life insurance has a cash value component. For example, term life insurance does not have cash value. Whole life and universal life are forms of life insurance that have a cash value component.

Which of the following types of life insurance does not have a cash value?

Final expense insurance is a form of life insurance intended only to cover end-of-life expenses such as funeral and burial costs. The coverage is permanent in the sense that if you keep paying premiums, the policy will remain in effect, but there is no cash value or investment component to these policies.

What is the primary difference between term and cash value life insurance quizlet?

Term life insurance is for a specific period, is substantially cheaper, and has no savings plan built into it. Cash value life insurance is normally for life and is more expensive because it funds a savings plan.

What is AD & D coverage?

An accidental death and dismemberment (AD&D) insurance policy can help protect your family’s finances in the event of the loss of your life or limb(s). It can be an affordable way to supplement your life insurance or medical coverage if you’re seriously injured or die as a result of an accident.

Who is the policy owner?

The Policy Owner is the person who receives the money from the claim. The Policy Owner may be the same person as the Life Insured. In which case when that person dies the money will go to their estate.

IT IS INTERESTING:  Does warranty cover stolen AirPods?

What is a COI insurance?

A COI is a statement of coverage issued by the company that insures your business. Usually no more than one page, a COI provides a summary of your business coverage. It serves as verification that your business is indeed insured. Potential clients may request a COI as a condition of doing business with you.

Does variable life insurance have a cash value?

Variable life insurance is a permanent life insurance policy with an investment component. The policy has a cash-value account, which is invested in a number of sub-accounts available in the policy.

Which type of policy combines the flexibility of a universal life policy with investment choices?

A variable life insurance policy allows most of the premiums to be invested in an investment account, combining the benefits of a variable policy with a whole life policy. One of the key risks of both types of policies is the fluctuation in cash value and death benefits due to the performance of investments.

What is a MEC policy?

A modified endowment contract (MEC) is a cash value life insurance policy that gets stripped of many tax benefits. The seven-pay test determines if the policy qualifies as an MEC. MECs ended a popular way to shelter money from taxes by borrowing from insurance policies whose cash value grew too quickly.