9 Flashcards

1
Q

Recommended amnt to be paid in order to cover cost of ins and keep policy in force thru its lifetime

A

Target prem

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2
Q

Purpose of target prem

A

Keep policy In force

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3
Q

Allows beneficiary to collect both dbenefit and cash value upon death of insured

A

Option b

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4
Q

Includes annual increase in cash value so that death benefit increases by amount that cash value increases

A

Under option b

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5
Q

At any point in time total dbenefit will always be equal to face amount of policy plus current amnt of cash value

A

Option b

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6
Q

Policy owner bears investment risk

A

In variable contracts

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7
Q

Purchased variable life ins policy
50000 policy
Stock performance declined fell to 10000

A

50000 paid out bc despite investments cannot be lower than initial benefit amnt

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8
Q

Cash value of variable life ins policy is

A

Not guarantee

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9
Q

Partial withdrawal from univ life policy taxed in

A

Interest

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10
Q

Determines cash value of variable life policy

A

Performance is policy portfolio

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11
Q

Cash value of variable life policy

A

Fluctuates with performance of portfolio which premiums have been invested by insurer

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12
Q

Which univ life has gradually increasing CASH value and level death benefit

A

Option a

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13
Q

Univ life policyowner can skip premium payment as long as

A

Policy contains sufficient cash value to cover cost of ins

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14
Q

For variable products assets must be

A

Kept in separate acct

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15
Q

If agent wishes to sell variable life policies what license must agent obtain

A

Securities

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16
Q

Variable products are governed in part by

A

Securities and exchange commission

17
Q

Securities and exchange commission means

A

Agents Must always secure securities license

18
Q

Policy allows withdrawals aka partial surrenders

A

Univ life
(Or cash value)