Chapter Four Exam Flashcards

1
Q

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?

A

Family Protection Policy

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2
Q

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?

A

Term

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3
Q

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:

A

Adjusted to the insured’s age at the time of renewal

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4
Q

The death benefit under the Universal Life Option B:

A

Gradually increases each year by the amount that the cash value increases

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5
Q

Which policy component decreases in decreasing term insurance?

A

Face Amount

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6
Q

What kind of policy allows withdrawals or partial surrenders?

A

Universal life

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7
Q

Which type of life insurance policy allows the policyowner to pay more or less than the planned premium?

A

Universal life

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8
Q

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?

A

Return of premium

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9
Q

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?

A

Limited-pay life

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10
Q

Which of the following types of insurance covers the whole family in a single contract?

A

Family Policy

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11
Q

When would a 20-pay whole life policy endow?

A

When the insured reaches age 100

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12
Q

What is the $100k 20 year level term policy?

A
  • 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
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