NEVADA LIFE AND HEALTH LICENSE PREP EXAM VERSION 2 UPDATE WITH MULTIPLE QUESTIONS, CORRECTLY ANSWERED

NEVADA LIFE AND HEALTH LICENSE PREP EXAM VERSION 2 UPDATE WITH MULTIPLE QUESTIONS, CORRECTLY ANSWERED

term insurance ✔- temporary protection because it only provides coverage
for a specific period of time
face amount ✔- death benefit
3 basic types of term coverage ✔- level, increasing, decreasing
- based on how the face amount changes during the policy term
What is the premium in term insurance? ✔- regardless of type of term
insurance purchased, premium is level throughout the term of policy
level term insurance ✔- death benefit does not change throughout the life
of the policy
annually renewable term ✔- premium increases annually according to the
attained age, to be renewable each year
decreasing term ✔- level premium and death benefit that decreases each
year over duration of the policy term
increasing term ✔- level premium and death benefit that increases each
year over the duration of the policy term
return of premium life insurance ✔- an increasing term policy that pays an
additional death beneficiary equal to the amount of the premiums paid
- return of premium is paid if the death occurs within a specified period of time or
if the insured outlives the policy term
renewable provision ✔- allows the policyowner the right to renew coverage
at the expiration date without evidence of insurability
convertible provision ✔- provides the policyowner the right to convert the
policy to a permanent insurance policy without evidence of insurability