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
