Chapter 4 Flashcards
A life insurance policy which matures at the termination of a specified period is known as
Endowment
Mrs. James wishes to purchase a life insurance policy that will help her survivors pay of her mortgage in case she dies. What type of policy would you recommend.
Decreasing
A whole life policy cash value will equal the policy face amount at what age?
100
Paul insured is family income plan. The policy in 2004, includes a whole life death benefit, of 50,000 with an income rider of twenty years that will pay, 1,000 per month. If Paul dies ten years after he buys the policy what will be paid to the beneficiary.
1000 per month until the year 2024 and then the 50,000 death benefit.
What portion of mortgage redemption plan decreases annually?
Death Benefit
A family policy is a combination of?
Whole Life and Level Term
All of the following characteristic of a Universal Life Policy EXCEPT
Bundled Premiums
What increases in a whole life policy every successive premium payment?
Cash Value
A type of life insurance premium initially lower than a traditional whole life plan and increases each year for an introductory period ?
Graded Premium Whole Life
What type of life insurance policy allows insures to a just premiums reflect any changes in investment income ?
Intermediate Premium Whole Life
Each of the following policy’s will lapse if the annual premium is not paid to the insurer. EXCEPT
Universal Life
Methods of financing life insurance which is best suited for individuals who are in higher tax brackets are known as?
Minimum deposit insurance
Johns client would like to purchase a whole life policy that will provide her with 30,000 in ten years. Which of the following will help accomplish this objective?
Ten year endowment
A variation of the endowment principle may be illustrated by a retirement income policy. In this plan the amount payable upon survival is greater than the face amount. The death benefit payable is the greater of the face amount or
Cash Value
Which of the following would not be covered by a family rider?
A Primary Insured
The Primary Portion of a adjustable life policy that is adjustable is the
Coverage Amount
What type of license must a producer hold to in order to engage in the sale of variable life insurance?
A life insurance license and Securities license
A policy covering a child characterized by an increasing death benefit at a future age with no premium increase best describes?
Jumping Juvenile policy
Which of the following types of life insurance is characterized by guaranteed coverage but provides no guarantees for as cash value build up.
Variable life policy
Bob purchased a policy that will pay him 50,000 at retirement. If he dies prior to this time the policy will pay his family 50,000. What type of policy did Bob purchase?
Endowment
Insurance companies use 100 to calculate life insurance death because.
They assume everyone will have died by that age.
A 40 year desires a life insurance policy that will allow him to increase or decrease the death benefit in the future would purchase a
Adjustable Life Policy
Jack buys a 100,000 20 year family income policy in 2010. The policy includes an income rider of 1,000 per month. He dies 2015 what will his beneficiary receive.
1,000 dollars per month until the year 2030. Than a lump sum of 100,000
Family policy usually provide death benefit coverage
For all family members but the death benefits differ
Interest sensitive whole life policies such as universal life use varying interest rates
In order to determine cash values
What type of policy did Bill buy if the contract states that the cash value will be 326 per 1,000 of coverage in year 18.
Whole Life
Which of the following life insurance policy’s provides the policy owner with flexibility and control over the investment portion of the contract.
Variable
Ralph wants a life insurance policy that will pay him 10,000 in ten years. Which of the following would you recommend
Ten year endowment
An insurance policy characterized by a level death benefit, a level premium, and a cash savings value is knowns as
Straight life policy
What type of life insurance policy would you suggest if desires death protection and cash value build up but is presently of limited means.
Modified Life
Whole life coverage on the primary insured and level term for the rest of the family.
Family Policy
Covers two or more individuals under one contract.
Joint Whole Life( First to die)
Combination of whole life and level term insurance
family protection policy or family policy
Form of limited payment policy chacterized by one lump sum or single premium payment.
Single Premium Whole Life
Policy fully paid up for life with no future premiums required. Pre determined Premium for a limited period
Limited Payment Whole Life
Provides constant or fixed amount of coverage for long as the policy is in placed
Level term insurance
Level Term insurance is renewable up to what age
70
Maximum amount of life insurance at the lowest initial outlay of funds
Term Life Insurance
The death benefit or amount decreases annually but the premium remains level or fixed long as the policy remains enforced
Decreasing Term
The renewal premium in renewable term policy is based upon the insured
Attained Age
Pure or temporary protection
Term Life insurance
death benefit increases each year according to the CPI
Indexed Whole Life
Combines most features of traditional life insurance but provides additional interest based on a equity index
Fixed Equity Indexed Life Insurance
