INSURANCE CH. 4 - TYPES OF LIFE
INSURANCE POLICIES QUESTIONS WITH
VERIFIED ANSWERS [ GRADED A+]
face amount - ✔✔amount of the death benefit
term life insurance - ✔✔only offer death benefit and remain in force for a
specified period of time
level term policy - ✔✔equals face amount throughout the term of coverage .
premium also remains level during term.
©morren2024/2025.Year published 2024.
, decreasing term policy - ✔✔declines over coverage period. makes sense for
financial obligations that decrease steadily over time (ex. home mortgages)
increasing term policy - ✔✔begins near zero and grows over the term of
coverage. premium increases
return of premium term policies - ✔✔will return all or a part of the premium paid
for the policy if the insured is still alive at the end of the term
renewability - ✔✔with term life, guarantees that the policy will renew (extend) at
the end of its term
step-rate premium - ✔✔payment of the higher premium at each renewal
convertibility - ✔✔allows a policyowner to convert a term insurance policy to
permanent
©morren2024/2025.Year published 2024.
INSURANCE POLICIES QUESTIONS WITH
VERIFIED ANSWERS [ GRADED A+]
face amount - ✔✔amount of the death benefit
term life insurance - ✔✔only offer death benefit and remain in force for a
specified period of time
level term policy - ✔✔equals face amount throughout the term of coverage .
premium also remains level during term.
©morren2024/2025.Year published 2024.
, decreasing term policy - ✔✔declines over coverage period. makes sense for
financial obligations that decrease steadily over time (ex. home mortgages)
increasing term policy - ✔✔begins near zero and grows over the term of
coverage. premium increases
return of premium term policies - ✔✔will return all or a part of the premium paid
for the policy if the insured is still alive at the end of the term
renewability - ✔✔with term life, guarantees that the policy will renew (extend) at
the end of its term
step-rate premium - ✔✔payment of the higher premium at each renewal
convertibility - ✔✔allows a policyowner to convert a term insurance policy to
permanent
©morren2024/2025.Year published 2024.
