Illinois Life & Health Insurance Exam

Accumulation {Ans: Pay-in period where annuitant contributes to an annuity. Also called purchase payments}LIMITED PAY POLICIES {Ans: ⚫️ Insured is covered for life ⚫️ Premiums condensed and paid in a shorter time frame}Immediate & Deferred {Ans: How would you like your money right away (immediately) or wait to withdraw (deferred).}Flexible Premium {Ans: Annuity owner can decide how often and how much to pay into the annuity and when to stop once a desired principle is attained.}Annuitant {Ans: The natural person who receives benefits under an annuity contract.}Increasing Term {Ans: The face amount increases with each payment for a specified period of time then the coverage ends.}3 Common Characteristics of Whole Life Policies {Ans: 1⃣Level (guaranteed cost) Premium- insured pays same premium every year and is based off issue age 2⃣Fixed/Level & guaranteed amount of death benefit 3⃣Cash Surrender Value(CSV)- also known as living benefits.}Return of Premium {Ans: A rider that allows you to get your premium back if you out live the coverage. All premiums paid are refunded without interest and will not be taxed.}Single Premium immediate Annuity {Ans: Pay lump sum get money right away}UNIVERSAL LIFE PREMIUM PAID IS SPLIT