Florida Life, Health and Variable Annuity Exam / Questions & Expertly Verified Answers, 2025 / 2026.Terms in this set (173) Categories of Life Insurance Ordinary, Industrial and Group Ordinary Life is individual life insurance that includes many types of TERM and PERMANENT insurance and is usually paid with monthly premiums. Is the principal type of life insurance purchased in the United States.Industrial Insurance small issue amounts with premiums collected weekly or monthly by agents at policyowner's home. Also known as BURIAL INSURANCE Group Insurance written for employer-employee groups to provide coverage for a number of individuals under one contract. Underwriting is based on the group and not the individual. Premiums are lower but when you leave it gets expensive.Term Life Insurance simplest type of life insurance, provides insurance protection for a specified period and pays a benefit only if the insured dies during the period. Like renting your insurance but it's more affordable but as you get older it goes up.(No Equity) Forms of Term Life Insurance level, decreasing and increasing Level Term Insurance provides a level amount of protection for a specified period, after which the policy expires. Level premium and level death benefit 1 / 3
Decreasing Term Insurance Increasing Term Insurance Features of Term Life Option to Renew Option to Convert Whole Life Insurance Endow Basic Forms of Whole Life Straight Whole Life characterized by benefit amounts that decrease gradually over the term of protection but the premium stays the same throughout. Used to cover LOANS or
MORTGAGES.
insurance that provides a death benefit that increases at periodic intervals over the policy's term. Usually used to cover a BUY SELL AGREEMENT and is usually purchased as a COST OF LIVING RIDER.option to renew an option to convert allows policyowner to renew the term policy before its termination date without having to provide evidence of insurability/good health.gives the insured the right to convert or exchange the term policy for a whole life(or permanent) plan without evidence of insurability.also known as permanent or cash value insurance, provides permanent protection for the whole of life and you pay premiums which are locked in for the entire life as well as the benefit which is also constant throughout the life. Designed to mature at age 100.Invest in bonds, treasuries and mortgages to guarantee it endows.when cash value = death benefit straight whole life, limited pay whole life and single- premium whole life whole life insurance providing permanent level protection with level premiums from the time the policy is issued until the insured's death(or age 100).Most affordable-longer you pay the more affordable. 2 / 3
Limited Pay Whole Life Single Premium Whole Life Modified Whole Life Endowment Policies Special Use Policies Family Plan Policies Joint Life Policies Last Survivor Policy have level premiums that are limited to a certain period(less than life). The period can be of any
duration. Ex: 20-pay life, pay premiums for 20 years
and then you are fully covered until your 100.involves a large one-time-only premium payment at the beginning of the policy period and from that point on the policy is completely paid for.distinguished by premiums that are lower than typical whole life premiums during the first few years(usually 5) and then higher than typical thereafter. Designed to make initial purchase of insurance easier and more attractive with a promise of an improved financial position in the future.endows at the end of the premium paying period, always before age 100. Normally for college funding but is taxed every year and is not popular.combination or "packaging" of different policy types, designed to serve a variety of needs.designed to insure all family members under one policy. Coverage is sold in units. Usually the insurance covering the family head is permanent and that covering the spouse and children is level or decreasing term. Children who are born later are covered automatically.one policy that covers two or more people using some type of permanent insurance it pays the death benefit when one of the insureds dies.also known as "second to die" policy, covers two lives but the benefits are paid upon the death of the last to survive.
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