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
