Term Life Policies

Question 1

What does “level” refer to in level term insurance?
A. Premiums
B. Face amount
C. Cash dividend

Answer 1

Face amount

Question 2

When the amount of insurance is increased in an adjustable life policy, what will the insurer require from the insured?
A. Renewable term
B. Evidence & Proof of insurability

Answer 2

Evidence and proof of insurability

Question 3

What policy component must decrease in a decreasing term insurance?
A. Death benefit
B. Face amount

Answer 3

Face amount

Annually decreasing face amounts overtime with level premium

Question 4

With Term policies, what happens to the premium throughout the term of the policy?
A. Premium increase
B. Premiums remain the same

Answer 4

Premiums remain the same

Question 5

A term life policy provision that allows policy owners to convert their term insurance into permanent policies without showing proof of insurability? Your premiums will increase due to your attained age
A. Renewable term
B convertible term

Answer 5

Convertible term

Question 6

Term insurance , that guarantees the insured has the right to continue coverage after expiration of initial policy without having to prove insurability?
A. Convertible term
B. Term rider
C. Renewable term

Answer 6

Renewable term

However premium price will increase, because insurer uses insurers current age to determine premium amount

Question 7

This policy is designed to cover the life of the debtor and pay the amount due on the loan if the debtor dies before the loan is repaid credit policies can only be purchased for up to the amount of the loan/debt outstanding. Typically purchased using a decreasing term life policy, which annually decreases face amount over time with level premiums.
A. Level term
B. Credit life policy

Answer 7

Credit life policy

Question 8

What kind of life insurance product covers children under their parents policy?
A. Term rider
B. Payor benefit

Answer 8

Term Rider