Life and Health Insurance Policies Exam Questions and answers with 100% Complete solutions | verified &updated 2024 | Graded A+

Life and Health Insurance Policies Exam Questions and answers with 100% Complete solutions | verified &updated 2024 | Graded A+ 3 basic types of coverage for life insurance - ordinary, industrial, group Ordinary Life Insurance - Individual life insurance that includes many types of temporary and permanent insurance protection plans -Premiums are normally paid monthly, quarterly, semiannually, or annually - "Principal type of life insurance" that includes insurance such as whole, term, universal, and variable life coverage as well as endowment policies Industrial Life Insurance - Characterized by comparatively small issue amounts (ex 1,000) with premiums collected on a weekly or monthly basis -Provides insurance coverage to industrial workers or people who are unable to afford insurance for bigger amounts -Quite often marketed and purchased as burial insurance Group Insurance - Is written for employer, employee groups, associations, unions, and creditors to provider coverage for a number of individuals under one contract -Underwriting based on the group not the indivual Term Life Insurance - Provides low-cost insurance protection for a specified period (term) and pays a benefit only if the insured dies during that period -NO CASH VALUE -Bought $50k 20yr plan Dies before 20yrs ==>gets $50k Dies after 20yrs ==>gets nothing -Term life provides the greatest amount of death benefit per dollar of initial cash outlay 3 Basic Forms of Term Life - Level term Decreasing term Increasing term