Missouri Life Insurance Questions & Answers

Missouri Life Insurance Questions & Answers Term life - ANS-Insurance provides pure death protection since it only pays a death benefit if the insured dies during the policy term. Term life insurance does not accrue cash value Whole life - ANS-Insurance provides death benefits for the entire life of the insured. It also provides living benefits in the form of cash values. It matures at age 100 Group life - ANS-Coverage is provided to the members of the group under the master contract. The group is written as a whole, not on each individual member. One of the benefits of group life coverage is there usually is no evidence of insurability required. Level term - ANS-Also called level premium level term, has a level face amount and level premiums. Premiums tend to be higher than annual renewable term because they are level throughout the policy period. However, the premiums will increase at each renewal. Decreasing term - ANS-Term life insurance that provides a decreasing face amount overtime with six premiums. These policies are usually use for mortgage protection Increasing term - ANS-Term life insurance that provides an increasing base of Mount overtime based on specific amounts or a percentage of the original face amount. Convertible term - ANS-A term life policy that allows policy owners to convert their term insurance into permanat policy without showing proof of insurability. Renewable term - ANS-A feature of term insurance allows the policy owner to renew that coverage after the designated term expires without having to prove insurability Annual renewable term - ANS-Term coverage that provides a level face amount that renews annually. This type of coverage is guaranteed renewable annually without proof of insurability Whole life insurance - ANS-Provides both living and death benefits. Provides permanent life insurance protection for the insureds entire life. It also provides living benefits such as c Advantages of whole life insurance - ANS