Chapter Four Exam Flashcards
A young father would like a life insurance policy to provide coverage for all five family members at the lowest cost. Which type of policy would he most likely buy?
Family Protection Policy
Which of the following types of insurance policies would provide the greatest amount of protection for a temporary period during which an insured will have limited financial resources?
Term
Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be:
Adjusted to the insured’s age at the time of renewal
The death benefit under the Universal Life Option B:
Gradually increases each year by the amount that the cash value increases
Which policy component decreases in decreasing term insurance?
Face Amount
What kind of policy allows withdrawals or partial surrenders?
Universal life
Which type of life insurance policy allows the policyowner to pay more or less than the planned premium?
Universal life
When an insured under a life insurance policy died, the designated beneficiary received the face amount of the policy, as well as a refund of all the premiums paid. Which rider is attached to the policy?
Return of premium
An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?
Limited-pay life
Which of the following types of insurance covers the whole family in a single contract?
Family Policy
When would a 20-pay whole life policy endow?
When the insured reaches age 100
What is the $100k 20 year level term policy?
- The policy will expire at the end of the 20-year period
- If the insured dies before the policy expired, the beneficiary will receive $100k
- The policy premiums will remain level for 20 years
