Module 2: Basic Plans Flashcards
- The convertible feature of a term insurance policy provides
that the policy may be
A. changed to a permanent insurance policy without evidence of
insurability
B. changed to another life
C. cashed for a guaranteed sum
D. changed to permanent insurance with evidence of insurability
A
2
. When explaining dividends, the following information must be
supplied
A. that they are not guaranteed
B. the dividends paid up in the previous
C. the anticipated dividends
D. the relation to the cost of the policy
A
- An insurance plan which offers protection and saving is called
A. temporary plan
B. permanent plan
C. participating plan
D. non-participating plan
B
- A man with moderate means can have maximum protection
possible through
A. 20 yr. endowment
B. Limited pay life
C. Term insurance
D. Whole life insurance
C
- Mr. Juan Valdez wants a policy which will entitle him to receive
dividends yearly. What will you recommend to Mr. Valdez?
A. participating plans
B. non-participating plans
C. term insurance
D. none of the above
A
- Which of the following can give the longest protection?
A. 20 yr. endowment
B. Endowment at 65
C. Ordinary life
D. 20 yr. term
C
- An individual at age 35 purchases a policy under which he will
in 20 years receive the face amount of the policy himself, if he
is still alive at that date. This policy is obviously a
A. 20 yr. endowment
B. 20 pay life
C. 20 yr. term
D. None of the above
A
- In a 20 life policy,
A. protection is until age 100, payment of premiums is for 20 years
B. protection is until age 100, payment of premiums until age 100
C. protection is for 20 years, payment of premium is for 20 years
D. protection is for 20 years, payment of premiums until age 100
A
- A participating plan entitles the policyowner to receive a return
of excess premiums. Such is termed as:
A. endowments
B. dividends
C. cash values
D. cash surrender value
B
- Mrs. Rose Cortez owns a policy which does not provide for
the build up of cash values and whose premiums remain level.
Mrs. Cortez owns:
A. ordinary life
B. limited pay life
C. decreasing term
D. level term
D
- Two attractive features of a term insurance are:
A. convertibility and cash values
B. cash values and dividends
C. protection and dividends
D. convertibility and renewability
D
- A term insurance which allows the policyowners to convert it
to a permanent insurance within a specified period without
evidence of insurability contains ________ feature:
A. convertibility
B. renewability
C. dividend option
D. both a & b
A
- A term policy only offers
A. cash values
B. protection
C. savings
D. dividends
B
- The main difference between a term plan and a permanent
plan is
A. permanent plans provide both protection and savings while term
plans offer protection only
B. permanent plans provides savings and dividends while term plans
provide savings only
C. permanent plans can be converted and renewed while term plans
cannot
D. all of the above
A
- The savings element of permanent plans allows for the build
up of
A. dividends
B. cash values
C. maturity benefits
D. death benefits
B
