CA- PSI- Life, Accident & Health Exam
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1. Reduced Paid Up: Nonforfeiture option provides new whole life policy at reduced
face amount of protection. Provides coverage for longest time.
2. Extended Term: Nonforfeiture option provides new TERM policy with same face
amount of coverage as original policy
3. Guaranteed Lifetime Withdrawal: Annuity rider that assures owner will at least
get amount paid for the annuity
4. Guaranteed Minimum Income: Rider that guarantees you will get a set amount
annually
5. Paid-Up Additions: Increase the death benefit of the original policy by the
amount the dividend will buy
6. Needs Approach: The predicted needs of a family after the premature death of
the insured
7. 3 Factors that determine premium of life insurance policy: Mortality, Interest,
Expense
8. Optionally Renewable: Allows insurer to terminate policy for any reason or in-
crease premiums for a class of insureds on specified date. Only allowed to terminate
on premium due dates
9. Monthly Premium for health insurance- How long is grace period: 10 days
for monthly pay mode. 7 days for weekly pay mode. 31 days for all other modes.
10. Purpose of Coinsurance provision: Prevent overutilization of policy benefits
11. What does "level" refer to in level term insurance?: Face Amount
12. Limited Pay Whole Life: Policyholder only pays premiums for a specified num-
ber of years. The whole policy is paid by age 100.
13. What type of policy can a policyowner skip payments without lapsing?: -
Universal
14. Death Benefit Options in Universal Life: Option A- Level death benefit, grad-
ually increasing cash value. IRS Corridor
Option B- Increasing death benefit
15. In Variable Universal, what is variable?: Cash Value and Face Amount
16. Pure Death Protection: (Term/temporary protection) if the insured dies during
this term, the beneficiary receives the pay out; if policy is cancelled/expires prior to
insured death, there is nothing payable at the end
17. Main purpose to purchase annuity: Provide income an annuitant can't outlive
18. SIMPLE plans: For no more than 100
19. Initial Enrollment Period (IEP): 7 months, 3 months prior and 3 months after
65th Birthday
20. Return of premium term insurance: is a product that returns the premiums at
the end of the term period provided the insurance is still in force
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