2026 WASHINGTON LIFE HEALTH INSURANCE
QUESTIONS AND ANSWERS SURE A+
✔✔Term insurance - ✔✔Temporary insurance that pays upon death but does not build
up a cash value savings account
✔✔Expire - ✔✔Only applies to term policies, when client outlives term of policy
✔✔Permanent Policy - ✔✔A life policy that builds up cash value
✔✔face value (Death benefit, proceeds) - ✔✔The amount to be paid to the insured
upon death
✔✔Premium - ✔✔Payment paid to insurance company for policy (usually fixed)
✔✔Grace period - ✔✔31 day grace period begins when you fail to make the premium
by the due date
✔✔Lapse - ✔✔Termination of policy due to non-payment after the 31 day grace period
✔✔Maturity - ✔✔Outlive the whole life policy OR the insured died
,✔✔Life insurance suitability - ✔✔A producer must have reasons to believe that the
policy he/she sold to someone is suitable
Human life approach: maintain standard of living
Needs approach: what client actually needs
✔✔Level premium term policies - ✔✔The premium does not change throughout the life
of the policy
✔✔Annually renewable term - ✔✔After the level term policy can extend coverage
without providing proof of insurability. The premium will go up each year, due to higher
attained age and no proof of insurability. Max age of 65.
Reentry term - Two premium levels for renewal for people who can prove insurability
and for folks who cant
✔✔Convertible term - ✔✔Can turn the term policy into a whole life policy without
proving insurability. The premium goes up after conversion
✔✔Level term - ✔✔The policy face value does not change throughout the life of the
policy
✔✔Increasing term - ✔✔The death benefit rises but the premium stays at a fixed
payment. Frequently attached to a whole life policy as a rider.
✔✔Decreasing term - ✔✔(AKA Mortgage protection insurance) Face value decreases
over time. Commonly used to pay off mortgage debt.
✔✔Whole life - ✔✔Builds cash value that can be accessed be the policy owner during
the insured's life
Characteristics:
Permanent protection (Until age 100)
Cash value AKA Cash surrender value (usually starts growing after second year) is
guaranteed by the cash value table
The policy endows at age 100
Policy holder can borrow against the policy
The policy does NOT pay both the cash value and the face value, it is one or the other
✔✔Continuous premium whole life - ✔✔The default premium method
✔✔Limited pay whole life - ✔✔Pays for a predetermined number of years.
✔✔Single premium who life - ✔✔One lump sum.
, ✔✔Graded/graduated premium whole life - ✔✔Increasing premium as time goes on
✔✔Conversion (Whole life) - ✔✔Proof of insurability from whole life to term life
✔✔Collateral (temporary) assignment - ✔✔When a policy is transferred to a creditor
and the creditor names itself as the beneficiary
✔✔assignment clause - ✔✔The procedure by which the transfer is accomplished
✔✔absolute assignment - ✔✔Owner transfers the owner's entire interest in the policy to
the assignee
✔✔Entire contract clause - ✔✔The policy and the application constitute the entire
agreement between the parties
Only executive officers are authorized to make changes to the policy
Statements in the contracts (by the insured) are representations, not warranties
✔✔Free-look clause (return/exchange provision) - ✔✔10 days to hang onto the policy
and void it at any time for any reason. Begins at policy reception, not issue
✔✔Incontestable clause - ✔✔After two years all claims in the application are protected
from being contested
✔✔Misstatement of age or gender clause - ✔✔Age and gender remain forever
contestable. Company adjusts death benefits accordingly to the amount the premium
would have purchased at the correct age or gender (adjust the face value based on
premium)
✔✔Premium payment clause - ✔✔outlines how, when, and where
premium payments should be made
✔✔Loan values clause - ✔✔defines the rules surrounding policy loans
Only applies to Permanent policies
Grants the Insured the right to borrow against the accumulated cash value
States the interest rate (usually 8 percent)
Requires that enough collateral be in the cash value account to pay both the loan and
the interest. So, the full cash value
can never be borrowed!.
✔✔Optional Provisions (riders) - ✔✔optional provisions usually are exclusions that help
the company avoid paying
claims
QUESTIONS AND ANSWERS SURE A+
✔✔Term insurance - ✔✔Temporary insurance that pays upon death but does not build
up a cash value savings account
✔✔Expire - ✔✔Only applies to term policies, when client outlives term of policy
✔✔Permanent Policy - ✔✔A life policy that builds up cash value
✔✔face value (Death benefit, proceeds) - ✔✔The amount to be paid to the insured
upon death
✔✔Premium - ✔✔Payment paid to insurance company for policy (usually fixed)
✔✔Grace period - ✔✔31 day grace period begins when you fail to make the premium
by the due date
✔✔Lapse - ✔✔Termination of policy due to non-payment after the 31 day grace period
✔✔Maturity - ✔✔Outlive the whole life policy OR the insured died
,✔✔Life insurance suitability - ✔✔A producer must have reasons to believe that the
policy he/she sold to someone is suitable
Human life approach: maintain standard of living
Needs approach: what client actually needs
✔✔Level premium term policies - ✔✔The premium does not change throughout the life
of the policy
✔✔Annually renewable term - ✔✔After the level term policy can extend coverage
without providing proof of insurability. The premium will go up each year, due to higher
attained age and no proof of insurability. Max age of 65.
Reentry term - Two premium levels for renewal for people who can prove insurability
and for folks who cant
✔✔Convertible term - ✔✔Can turn the term policy into a whole life policy without
proving insurability. The premium goes up after conversion
✔✔Level term - ✔✔The policy face value does not change throughout the life of the
policy
✔✔Increasing term - ✔✔The death benefit rises but the premium stays at a fixed
payment. Frequently attached to a whole life policy as a rider.
✔✔Decreasing term - ✔✔(AKA Mortgage protection insurance) Face value decreases
over time. Commonly used to pay off mortgage debt.
✔✔Whole life - ✔✔Builds cash value that can be accessed be the policy owner during
the insured's life
Characteristics:
Permanent protection (Until age 100)
Cash value AKA Cash surrender value (usually starts growing after second year) is
guaranteed by the cash value table
The policy endows at age 100
Policy holder can borrow against the policy
The policy does NOT pay both the cash value and the face value, it is one or the other
✔✔Continuous premium whole life - ✔✔The default premium method
✔✔Limited pay whole life - ✔✔Pays for a predetermined number of years.
✔✔Single premium who life - ✔✔One lump sum.
, ✔✔Graded/graduated premium whole life - ✔✔Increasing premium as time goes on
✔✔Conversion (Whole life) - ✔✔Proof of insurability from whole life to term life
✔✔Collateral (temporary) assignment - ✔✔When a policy is transferred to a creditor
and the creditor names itself as the beneficiary
✔✔assignment clause - ✔✔The procedure by which the transfer is accomplished
✔✔absolute assignment - ✔✔Owner transfers the owner's entire interest in the policy to
the assignee
✔✔Entire contract clause - ✔✔The policy and the application constitute the entire
agreement between the parties
Only executive officers are authorized to make changes to the policy
Statements in the contracts (by the insured) are representations, not warranties
✔✔Free-look clause (return/exchange provision) - ✔✔10 days to hang onto the policy
and void it at any time for any reason. Begins at policy reception, not issue
✔✔Incontestable clause - ✔✔After two years all claims in the application are protected
from being contested
✔✔Misstatement of age or gender clause - ✔✔Age and gender remain forever
contestable. Company adjusts death benefits accordingly to the amount the premium
would have purchased at the correct age or gender (adjust the face value based on
premium)
✔✔Premium payment clause - ✔✔outlines how, when, and where
premium payments should be made
✔✔Loan values clause - ✔✔defines the rules surrounding policy loans
Only applies to Permanent policies
Grants the Insured the right to borrow against the accumulated cash value
States the interest rate (usually 8 percent)
Requires that enough collateral be in the cash value account to pay both the loan and
the interest. So, the full cash value
can never be borrowed!.
✔✔Optional Provisions (riders) - ✔✔optional provisions usually are exclusions that help
the company avoid paying
claims
