Life Policies

Question 1

Interest Sensitive Whole Life insurance has a what kind of premium payment?

Answer 1

Flexible premium payment

Question 2

The investment gains from a Universal Life Policy usually go toward what?

Answer 2

The Cash Value

Question 3

What type of policy is considered to be overfunded, as stated by IRS guidelines?

Answer 3

Modified Endowment Contract

Question 4

What kind of life insurance product covers children under their parent’s policy?

Answer 4

A term rider

Question 5

X wants to buy $50,000 worth of permanent protection on his spouse and $25,000 worth of 10-year Term coverage on himself under the same policy, x should purchase what?

Answer 5

A Whole Life Policy with an Other Insured Rider

Question 6

A policy in which the cash value may fluctuate to reflect changing assumptions regarding mortality cost, interest, and expense factors?

Answer 6

Universal Life

Question 7

What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies?

Answer 7

Family Maintenance Policy

Question 8

What is guaranteed with a Variable Whole Life Policy?

Answer 8

A minimum guaranteed Death benefit is provided

Question 9

Can the premiums on equity index life insurance be lowered or raised, based on investment performance?

Answer 9

no

Question 10

G purchased a Family Income policy at age 40. The policy has a 20-year rider period. If G were to die at age 50, how long would G’s family receive an income?

Answer 10

10 years

Question 11

does a variable insurance policy guarantee return on investment on its accounts?

Answer 11

no

Question 12

Does a a Modified Endowment Contract (MEC) Exceed or fall below the maximum amount of premium that can be paid into a policy and still have it recognized as a life insurance contract

Answer 12

Exceeds

Question 13

K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind of policy is this?

Answer 13

Modified Whole Life Insurance

Question 14

Life insurance that covers an insured’s whole life with level premiums paid over a limited time is called

Answer 14

Limited pay life

Question 15

A 15-year mortgage is best protected by what kind of life policy?

Answer 15

15 Year decreasing term policy

Question 16

F needs life insurance that provides coverage for only a limited amount of time with a death benefit that changes regularly according to a schedule. What kind of policy is needed?

Answer 16

Decreasing term policy

Question 17

A Limited-Pay Life policy has

Answer 17

premium payments limited to a specified number of years

Question 18

When is the face amount of a Whole Life policy paid?

Answer 18

When the insured dies or at the policy’s maturity date, whichever happens first

Question 19

How long does the coverage normally remain on a limited-pay life policy?

Answer 19

age 100

Question 20

A term life insurance policy matures

Answer 20

upon the insured’s death during the term of the policy