Example: A client or producer applies this rule in a policy situation. The correct concept is Term life. Term life provides death protection for a specified period and normally does not build cash value.

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Example: A client or producer applies this rule in a policy situation. The correct concept is Level term. Level term maintains a level face amount for the stated term.

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Example: A client or producer applies this rule in a policy situation. The correct concept is Decreasing term. Decreasing term is often used for debts such as mortgages because the death benefit declines over time.

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Example: A client or producer applies this rule in a policy situation. The correct concept is Annual renewable term. Annual renewable term renews yearly and premiums generally increase as the insured ages.

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Example: A client or producer applies this rule in a policy situation. The correct concept is Convert term coverage to permanent insurance without new evidence of insurability, subject to policy terms. Conversion permits a change from term to permanent coverage without proving insurability again, subject to the contract.

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Example: A client or producer applies this rule in a policy situation. The correct concept is Whole life. Traditional whole life combines permanent protection, level premiums, and guaranteed cash values.

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Example: A client or producer applies this rule in a policy situation. The correct concept is Limited-pay whole life. Limited-pay whole life compresses premium payments into a shorter period while coverage can continue for life.

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Example: A client or producer applies this rule in a policy situation. The correct concept is Single-premium whole life. Single-premium whole life uses one lump-sum premium to fund permanent coverage.

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Example: A client or producer applies this rule in a policy situation. The correct concept is Universal life. Universal life is a flexible-premium permanent policy with adjustable death benefit features.

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Example: A client or producer applies this rule in a policy situation. The correct concept is Variable life. Variable life uses separate accounts; cash values vary with investment performance and are not guaranteed like traditional whole life.

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