Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Insurance > Life Insurance Policies > Flashcards

Life Insurance Policies Flashcards

1
Q

Whole life policies mature at age 100. If the owner (insured) dies at age 80, with no outstanding loans on the policy, what portion of the death benefit is paid to the beneficiary?

A

The full death benefit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What type of policy issues certificates of insurance to insureds?

A

Group policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Regarding taxation, how does the cash value of a universal life policy accumulate?

A

Tax deferred

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What happens to the cash value when a whole life insurance policy matures?

A

Cash value is paid to the policyowner

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What type of premium is charged on a straight life policy?

A

Level premium for the life of the insured

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Main advantage of converting from group to individual coverage?

A

Evidence of insurability isn’t required

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What type of insurance policy is Life Paid-up at age 65?

A

Limited-pay whole life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Who owns a group life insurance contract?

A

The employer, also known as the sponsor of the group

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Group life ins policies are written as what type of insurance?

A

Annually renewable term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

In annually renewable term policies, what is the annual premium based on?

A

The insured’s attained age

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What elements of an adjustable life policy can be changed by the policyowners?

A

The amount and payment period of the premium, the face amount, and the period for protection

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the diff between these whole life policies: straight life, limited payment, and single premium

A

The premium payment mode

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

The policyowner of a whole life is also the insured. What age must they attain to receive the policy’s face amount?

A

Age 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What type of insurance policy offers pure death protection?

A

Term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Who is entitled to the cash values in a LI policy?

A

The policyowner

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Characteristics of the group that underwriters consider when issuing the group life policy?

A

Groups purpose, size, financial strength and turnover

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

In term policies what happens to the premium throughout the term of the policy?

A

It remains level

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Universal life option that has a gradually increasing cash value and a level death benefit

A

Option A

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Who is insured under a juvenile life policy?

A

A minor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

The death protection component of a universal whole life is expressed as what type of coverage?

A

Annually renewable term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

You borrow 10k on a 5 year note from your bank. The note is due in installments. What type of policy is best suited for this situation?

A

Decreasing term

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What are the death benefit options in a universal life policy?

A

Option A - level death benefit

Option B - increasing death benefit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

When would a 20 pay whole life policy endow?

A

When the insured reaches age 100

24
Q

What is the purpose of establishing the target premium for a universal whole life?

A

To prevent the policy from lapsing

25
Q

When the amount of insurance is increased in an adjustable life policy, what will the insurer require from the insured?

A

Evidence of insurability

26
Q

Under option B in the universal life, what happens to the death benefit?

A

The benefit increases each year by the amount the cash value increases

27
Q

Between adjustable life and universal life, which one provides more flexibility?

A

Universal

28
Q

What type of policy is typically issued without proof of insurability from the insured?

A

Group policy

29
Q

Increasing term policy limits do what each year

A

Increase. Sometimes called return of premium policy

30
Q

Do you need a physical to renew term insurance?

A

Not up until a certain age

31
Q

Can you convert term insurance to whole life?

A

Yes but not the reverse. Conversion is based on the insureds age

32
Q

On term insurance the re entry is contingent upon

A

A physical exam

33
Q

In an annual renewable term the premium will increase what happens to the face amount

A

It stays the same

34
Q

The face amount on a mortgage protection life insurance policy decreases at

A

The same rate the mortgage balance declines

35
Q

What decreases in a decreasing term

A

The face amount not the premium

36
Q

Whole life benefits are bundled (packaged), universal life benefits are

A

Transparent (stand alone)

37
Q

Whole life and limited pay life both reach maturity at

A

Age 100

38
Q

Traditional whole life policy premiums are due until

A

Until age 100 or the insured dies

39
Q

Straight or traditional whole life has what premium and provides coverage until

A

Level premium and provides coverage until insureds death or reaches age 100

40
Q

When policyowner lists a group of beneficiaries

A

Class designation

41
Q

Can policy proceeds be paid directly to a minor?

A

No because they cannot sign a release

42
Q

To change an irrevocable beneficiary what do you need

A

Beneficiaries consent

43
Q

Does a revocable benny have any vested rights?

A

No but an irrevocable does

44
Q

What happens if the primary beneficiary dies before the insured

A

Contingent benny receives $

45
Q

Under the common disaster provision

A

Its assumed the insured died last

46
Q

If the policy payments are paid in a lump sum does the spendthrift clause apply?

A

No

47
Q

Annual interest on a LI loan is added to what as it accrues

A

The amt of the loan

48
Q

What happens if an outstanding policy loan plus interest exceeds the cash value of the policy

A

Policy will lapse

49
Q

When can you take a loan from a whole life policy?

A

As soon as it accumulates cash value

50
Q

Automatic premium rider can be added to a whole life policy but not

A

to term or credit disability

51
Q

When are partial surrenders usually allowed in

A

annuities, universal life and variable life

52
Q

Does waiver of premium pay a cash value to the insured?

A

No

53
Q

Waiver of premium

A

Rider that pays the premium on behalf of the disabled after a short waiting period until the insured recovers or dies

54
Q

Payor Benefit

A

If parent paying premium on minors policy dies the premium is waived - not the same as waiver of premium

55
Q

Accelerated Benefits rider

A

pays proceeds prior to death in the case of terminal illness

56
Q

Change of insured

A

Employer wants to change key person from one key person to another

57
Q

Annuity

A

Contract that pays specified indemnity to its owner over a period of time

Insurance (17 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions