chapter 3 types of Life policies-quiz questions Flashcards
A ______ Term life policy is normally used when covering an insured mortgage balance
decreasing
K age 45, and his wife age 43 have three children. they purchase a family policy that covers K’s wife to age 65. All of these situations will pay a death benefit except
K’s wife dies at age 66
The combination of Whole Life and _______ term insurance is referred to as a family income policy
decreasing
what kind of life insurance product covers children under their paretns policy
A term rider
K is looking to purchase renewable term insurance. which of these types of insurance may be renewable?
level
pays the same benefit amount if death occurs at any point of the term. they may be renewable
what type of life policy covers two people and pays upon the death of the last insured?
survivorship
Y purchased $100,000 worth of permanent protection on himself and $50,000 worth of 10-year Term coverage for his wife on the same policy. which policy did Y purchase?
whole life policy with an other insured rider
who has the option to renew a renewable term policy?
insured
P is looking to purchase a life insurance policy withat will pay a stated monthly income to his beneficiaries for 20 years after he dies and a lump sum of $20,000 at the end of that 20 year period. what type of policy should P purchase?
Family maintenance policy
Family maintenance policy pays a monthly income from the date of death of the insured to the end of the preselected period. the payment of the face amount of the policy is payable at the end of such preselected period
under an interest-sensitive whole life policy
cash values are determined by interest rates
which of the following actions is not possible with a universal life policy?
premiums may be applied as a credit against income tax
what type of life policy has a death benefit that adjusts periodically and is written for a specific period of time?
decreasing term
a universal life policy is sometimes referred to as an unbundled life policy because the owner can see the interest earned, cost of insurance and the
expense charges
which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling?
Variable life
Variable whole life insurance can be described as
both an insurance and securities product
A term life insurance policy matures
upon the insureds death during the term of the policy
which of the following is considered an element of Variable Life Policy?
underlying equity investment
what type of insurance offers permanent life coverage with premium that are payable for life?
whole life
the amount of coverage on a group credit life policy is limited to
insureds total loan value
which of the following policies is characterized by a flexible premium and death benefit and allows the policy owner control of the investment aspect of the plan?
variable universale life
any policy whose title includes the term “universal” indicates that the policy has a flexible or adjustable premium. the variable nature of the product indicates that the cash savings value is invested in the stock market which permits for a contract owner to decide where the equity is to be invested
when is the face amount paid under a joint life and survivor policy
after the death of the last insured
a ____ _____ life policy combines investment choices with a form of Term coverage
variable universal
T would like to assure $10,000 is available in 10 years to replace a roof on his house. what kind of $10,000 policy should T purchase?
a 10 year endowment
credit life insurance is
issued in an amount not to exceed the amount of the loan
S is covered by a whole life policy. which insurance product can cover his children
child term rider
which of the following is not required to be included in a whole life policy
policy guaranteed dividend table
which of the following is not required to be included in a whole life policy
policy guaranteed dividend table
how does a typical variable life policy investment account grow
through mutual funds, stocks and bonds
a life insurance policy that provides a policy owner with cash value along with a level face amount is called
whole life
what kind of life insurance policy pays a specified monthly income to a beneficiary for 30 years and then pays a lump sum benefit at the end of that 30 years?
family maintenance policy
what type of policy would offer a 40 year old the quickest accumulation of cash value
20-paylife
a limited pay life policy has
premium payments limited to a specified number of years
what type of life insurance gives the greatest amount of coverage for a limited period of time
term life
which of these life products are not considered interest-sensitive
modified whole life
which of these life products are not considered interest-sensitive
modified whole life
which type of policy is considered to be overfunded as stated by IRS guidelines
modified endowment contract
w
what kind of premium does a whole life policy have
level
how long does the coverage normally remain on a limited-pay life policy
age 100
even though the premium payments are limited to a certain period the insurance protection extends until the insureds death or age 100
