Arizona Life Insurance Exam - Life Insurance Basics Questions and Answers Graded A

Arizona Life Insurance Exam - Life Insurance Basics Questions and Answers Graded A Beneficiary A person who receives the benefits of an insurance policy Death Benefit The amount paid upon the death of the insured in a life insurance policy Cash Value Equity amount accumulated in permanent life insurance Estate A person's net worth Illustrations Presentation or depiction of nonguaranteed elements of a life insurance policy Life Insurance Coverage on human lives Liquidation Selling assets in order to raise capital (such as using cash value for capital needs) Lump-Sum Payment of the entire benefit in one sum Minor A person under legal age Solvency The ability to meet financial obligations (an insurance company maintains enough assets to pay claims) Survivor Protection Life insurance can provide the funds necessary for the survivors of the insured to be able to maintain their lifestyle in the event of the insured's death and this is called ________________ Estate Conservation Life insurance proceeds may be used to pay inheritance taxes and federal estate taxes so that it is not necessary for the beneficiaries to sell off the assets which is ___________________ Estate Creation The insured will have an estate worth the amount of the life policy upon the first paid premium which is ______________ Viatical Settlements ____________________ allows someone living with a life-threatening condition to sell their existing life insurance policy and use the proceeds when they are most needed, before their death Viator The insured selling their life insurance in a viatical settlement Viatical Settlement Provider A person, other than a viator, that enters into a viatical settlement contract (the person buying the life insurance policy) Viatical Producer A person who represents