Participating policy = right to share in surplus through dividends (typically from mutual insurers).

Group = master policy + certificates of insurance.

Variable life and annuities: life license plus FINRA registration.

Term = pure protection; no cash value; nothing is paid if the insured outlives the term.

Renewable: renew without evidence of insurability, at the attained-age premium.

Convertible: switch to permanent coverage without evidence of insurability.

Decreasing term = shrinking benefit, level premium: mortgage and credit life.

Level term: level benefit; premium level for the term or rising yearly (ART).

Increasing term is usually a rider (cost of living, return of premium).

Whole life: level premium, guaranteed death benefit, guaranteed cash value.

Matures when cash value equals the face amount (traditionally age 100).

Unpaid policy loans reduce the death benefit.

Shorter payment period = higher premium; single premium is the highest.

Initial premium: modified < ordinary < limited pay < single premium.

The 7-pay test applies to all policies; failing it makes a MEC (IRC §7702A).

UL = flexible premium, with separate cost of insurance and cash value.

UL cash value earns the greater of the current rate or the guaranteed minimum.

Adjustable life: raising the face amount needs evidence of insurability.

Option A = level death benefit; cheaper; subject to the corridor rule.

Option B = face amount + cash value; more expensive.

The corridor comes from IRC §7702 (1984).

Joint = pays at the first death; survivorship = pays at the last death.

Survivorship is cheaper than joint life.

Survivorship is common for estate taxes at the second death.

CA §10112: minors may contract for life insurance; under 16 needs a parent's or guardian's written consent.

Payor rider: premiums are waived if the payor dies or is disabled, until the child reaches a set age.

Minor beneficiaries: pay through a guardian, trust or UTMA custodian.