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August 31, 2012 at 11:00 PM
Your clients likely aren’t in the habit of talking about final expense or impaired risk. And a hybrid? Isn’t that a type of car? Take a look at our series of slideshows offering easy definitions for life insurance terms you might be struggling to explain to prospects.
To view the rest of the series, see:
The ABCs of Life Insurance: A-E
The ABCs of Life Insurance: K-O
The ABCs of Life Insurance: P-T
The ABCs of Life Insurance: U-Z
Final Expense Life Insurance: A permanent life insurance product with level premiums where the proceeds are used to pay off final expenses, such as funeral costs, medical bills or other associated expenses. Also called burial insurance, final expense policies are typically inexpensive and offer relatively small death benefits. They often require no medical exam and are typically favored by seniors on fixed incomes as an economical way to cover final expenses.
Bonus term
Free Look Provision: An individual life insurance and annuity provision that gives the policy owner a stated time, typically 10 days after policy delivery, in which to cancel the policy and receive a full refund on the initial premium payment.
Guaranteed Issue Life Insurance: Often marketed to the elderly and people with serious medical conditions, guaranteed issue policies provide coverage without any medical examination. Unlike simplified issue policies, guaranteed issue policies also don’t require the applicant to answer any medical questions. Most have small face values (less than $20,000), and because only age, gender and location are used to set premiums, costs tend to be very high, making it an undesirable option for relatively healthy people.
