Life insurance policies

Question 1

The cash value accumulation in a life insurance policy

Answer 1

Can be used for loans or later as retirement income

Question 2

Decreasing term insurance is most often used for

Answer 2

credit or mortgage insurance

Question 3

When does cash value normally start accruing in whole life policies

Answer 3

3 years

Question 4

How long does coverage continue on a limited- pay Whole life policy?

Answer 4

Death or age 100

Question 5

All the following are true regarding a decreasing term policy EXCEPT

Answer 5

The payable premium amount steadily declines throughout the duration of the contract

Question 6

An annual renewable term policy

Answer 6

Renews each year with an increased premium

Question 7

Which statement about universal life insurance is INCORRECT

Answer 7

Premiums must be paid on a monthly basis

Question 8

A 35- year old insured’s five year renewable level term policy will renew to a

Answer 8

5-year level term with age 40 premiums

Question 9

The cash value in a single premium whole life policy will be available

Answer 9

Immediately

Question 10

All the following statements regarding whole life insurance are true EXCEPT

Answer 10

The policy’s cash value decreases each year the policy is in force

Question 11

When are benefits paid from a joint life policy?

Answer 11

When the first insured dies

Question 12

In comparison with straight life insurance, premiums for survivor ship life are usually

Answer 12

lower

Question 13

Which of the following statements is TRUE regarding a universal life policy?

Answer 13

The premiums can be decreased by the insured

Question 14

Credit life policies are characterized by all the following

if the insured dies EXCEPT

Answer 14

Proceeds are paid directly to the debtor

Question 15

Which statement is INCORRECT concerning group life policies

Answer 15

The group must be formed for insurance purposes

Question 16

Group life insurance plans generally require participation by at least

Answer 16

75% of eligible employees, under a contributory plan

Question 17

The premiums in an increasing term policy

Answer 17

Remain level throughout the term period

Question 18

Variable universal life insurance policies do NOT provide

Answer 18

Guaranteed interest rates

Question 19

Under a group policy who receives the master contract

Answer 19

Employer

Question 20

If an adjustable life policy owner makes an additional premium payment, the policy may be affected in the following ways EXCEPT the

Answer 20

Value of the non forfeiture options may decrease

Question 21

Which policy would require the producer to have a license issued by FINRA?

Answer 21

Variable life