LOMA 281 Module 2 Questions with Correct Answers

LOMA 281 Module 2 Questions with Correct Answers Term Life insurance - Answer-Insurance that provides a policy benefit if the insured dies during a specified period of time. Policy term - Answer-The specified period of time for which a term life insurance policy provides coverage. Level Term life insurance - Answer-A plan of term life insurance that provides a policy benefit that remains the same over the term of coverage. Decreasing term life insurance - Answer-A plan of term life insurance that provides a policy benefit that decrease in amount over the term of coverage. Increasing term life insurance - Answer-A plan of life insurance that provides a policy benefit that starts at one amount and increases by some specified amount or percentage at stated intervals over the term of coverage. Mortgage insurance - Answer-A plan of decreasing term life insurance designed to provide a benefit amount that corresponds to the decreasing amount owed on a mortgage loan Credit life insurance - Answer-A type of term life insurance designed to pay the balance due on a loan if the borrower dies before the loan is paid Family income coverage - Answer-A plan of decreasing term life insurance that provides a stated monthly income benefit amount to the insured's surviving spouse if the insured dies during the term of coverage. Return of premium term insurance - Answer-A type of term insurance that provides a death benefit if the insured dies during the term of coverage and that promises a return of premiums if the insured does not die during the term of coverage. Renewable term insurance - Answer-Term life insurance that gives the policyowner the option to continue the policy's coverage for an additional policy term without providing evidence of insurability. Evidence of insurability - Answer-Proof that a given person is an insurable risk. Convertible term insurance - Answer-Term life insurance that gives the policyowner the right to convert the term policy to a cash value life insurance policy without providing evidence of insurability. Conversion period - Answer-The specified period of time following policy issue during which the owner of a convertible term life insurance policy can convert the coverage to cash value life insurance.