Insurance Planning

Question 1

Known maximum cost and minimum death benefit levels; dividends may reduce premiums, buy paid-up additions, accumulate at interest, be paid in cash, or purchase one-year term insurance

Answer 1

Description of whole life insurance.

Question 2

Whole life contract; choice of investment options; death benefits depend on investment results, but guaranteed minimum.

Answer 2

Description of variable life insurance.

Question 3

Flexible premium current-assumption adjustable death benefit; policy elements unbundled; two death benefit options (A and B)

Answer 3

Description of Universal Life insurance.

Question 4

Combines many features of universal and variable life.

Answer 4

Description of variable universal life insurance.

Question 5

Short to intermediate term need; largest death benefit for minimum initial premium

Answer 5

Annual renewable term

Question 6

Anybody who needs lifetime coverage; low risk tolerance

Answer 6

Whole life insurance

Question 7

Pure life insurance with no cash value; initially, the highest death benefit for the lowest premium; premium exponentiates

Answer 7

Description of annual renewable term insurance