Term Life — Coverage for set period (10/20/30 yrs). Death benefit paid if insured dies during term. Policy expires with NO cash value. Zero accumulation.

Whole Life — Permanent. Covers entire life. Level premiums, guaranteed benefit, builds cash value. Three elements: (1) guaranteed death benefit, (2) level premium, (3) cash growth.

Universal Life (UL) — Flexible. Adjust premiums and death benefit. Two components: ART (pure insurance) + accumulation account. Option A = level; Option B = face amount PLUS cash value.

Variable Life (VUL) — Invested in sub-accounts (like mutual funds). Returns fluctuate with market. Requires life license AND securities license (Series 6 or 7).

An annuity is the OPPOSITE of life insurance — protects against outliving your money, not dying too soon.

Life-only annuity — Highest payout, NO survivor benefit. Riskiest for annuitant's family.

Riders are add-ons that modify a policy with extra coverage. Heavily tested on exam.

Disability Waiver — Must be TOTAL and PERMANENT. Temporary disability does NOT qualify.

Accidental Death Benefit — ADDS to base death benefit. Replaces nothing.

Nonforfeiture Options — When policy lapses, you don't lose value: Extended Term (same face, shorter period) or Reduced Paid-Up (smaller face, paid forever).

Key numbers: Free-look period, grace period, CE hours (24 hrs/2 yrs), license valid 180 days.

Part 1 — General info: name, address, DOB, occupation, tobacco use, hazardous activities.

Misrepresentation — Material misrepresentation = policy can be voided. Premium collected in good faith is returned. Coverage begins ONLY if conditional receipt given.

Texas Dept of Insurance issues/revokes licenses. Fingerprints required. CE: 24 hours every 2 years.

Twisting — Replacing a policy with a different carrier for improper reasons. Always disclose free-look period.

TLHIGA — Texas Life & Health Insurance Guaranty Association protects policyholders if insurer becomes insolvent.