Question

Match term with definition:

1. Term Life:
2. Whole Life:
3. Endowment Life:
4. Variable Life:
5. Universal Life:
   1. Premiums are not fixed, as with traditional insurance policies, but within limits, policyholders may adjust their premium payments based on their needs and investment goals.
   2. life insurance that provides coverage at a fixed rate of payments for a limited period of time, after which coverage at the previous rate of premiums is no longer guaranteed and the client must either forgo coverage or potentially obtain further coverage with different payments or conditions. If the life insured dies during the term, the death benefit will be paid to the beneficiary.
   3. life insurance which is also a savings plan in which the premium paying period is chosen and the insurance amount is paid out upon maturity or upon death of the insured.
   4. life insurance policy which is guaranteed to remain in force for the insured's entire lifetime, and, as long as the contract terms are met, the insurer will pay the death benefit of the policy to the policy's beneficiaries when the insured dies.
   5. a type of cash value life insurance where the excess of premium payments above the current cost of insurance is credited to the cash value of the policy, which is credited each month with interest.

Answer 1

Term Life: b) life insurance that provides coverage at a fixed rate of payments for a limited period of time, after which coverage at the previous rate of premiums is no longer guaranteed and the client must either forgo coverage or potentially obtain further coverage with different payments or conditions. If the life insured dies during the term, the death benefit will be paid to the beneficiary.

Whole Life: d) life insurance policy which is guaranteed to remain in force for the insured's entire lifetime, and, as long as the contract terms are met, the insurer will pay the death benefit of the policy to the policy's beneficiaries when the insured dies.

Endowment Life:c) life insurance which is also a savings plan in which the premium paying period is chosen and the insurance amount is paid out upon maturity or upon death of the insured.

Variable Life: a) Premiums are not fixed, as with traditional insurance policies, but within limits, policyholders may adjust their premium payments based on their needs and investment goals.

Universal Life: e) a type of cash value life insurance where the excess of premium payments above the current cost of insurance is credited to the cash value of the policy, which is credited each month with interest.