Types Of Life Insurance

Question 1

Issues very small face amounts
Premiums paid weekly
Designed for burial coverage

Answer 1

Industrial

Question 2

Life insurance of commercial companies

Answer 2

Ordinary

Question 3

Only good for a limited time period
Termination date

Answer 3

Term

Question 4

Type of term life insurance
Level face amount and level premiums

Answer 4

Level term

Question 5

Type of term
Provides annually decreasing face amount
Typically used for mortgage protection

Answer 5

Decreasing term

Question 6

Designed to cover the life of a debtor and pay the amount due on a loan

Answer 6

Credit policy

Question 7

Type of term
Provides an increasing face amount over time

Answer 7

Increasing term

Question 8

Allows policy owners to convert their term insurance into permanent policies

Answer 8

Convertible term

Question 9

Guarantees the insured the right to continue term coverage after the expiration of the initial policy period without having to prove insurability

Answer 9

Renewable term

Question 10

Provides level face amount that renews annually

Answer 10

Annual renewable term

Question 11

Type of life insurance product that covers children under their parents policy

Answer 11

Term rider

Question 12

Provides death benefits for the entire life of the insured
Provides cash values

Answer 12

Whole life

Question 13

Whole life
Payable throughout lifetime

Answer 13

Straight

Question 14

Payments limited to a certain period

Answer 14

Limited pay

Question 15

Premium stays fixed for the first 5 years
Increases at year 6 and stays level after

Answer 15

Modified whole

Question 16

Policy that exceeds the max amount of premium that can be paid into a policy and still have it recognized as a life insurance contract

Answer 16

Modified endowment contract

Question 17

Covers the lives of 2 individuals and saves on premium cost by averaging the ages of the two insureds

Answer 17

Joint life

Question 18

Covers the lives of two individuals
Only pays death benefit upon the death of the last insured person

Answer 18

Joint survivor

Question 19

Pays a monthly income from the date of death of the insured to the end of the preselected period

Answer 19

Family maintenance policy

Question 20

Pay an income beginning at the insured death and continues for a period specified from the date of policy issue

Answer 20

Family income policy

Question 21

The policy owner can make adjustments to the premium or face value amount

Answer 21

Adjustable Life

Question 22

Incorporates flexible premiums and death benefit. Use gains to fund the cash value

Answer 22

Universal life

Question 23

Requires a producer to have proper FINRA and NASD securities registration prior to selling. Grows through mutual funds, stocks, and bonds

Answer 23

Variable life

Question 24

Contains a monthly mortality charge
The policy owner controls the investment of cash values and selects the timing and amount of the premiums

Answer 24

Variable universal whole life

Question 25

This plan allows policyholders to link accumulation values to an outside equity index like the SP 500

Answer 25

Equity index universal life

Question 26

When an investor purchases a policy on the life of someone else to profit upon that persons death

Answer 26

Investor originated life

Question 27

Contract providing for payment of the face amount at the end of a fixed period, at a specified age of the insured, or at the insureds death before the end of the stated period

Answer 27

Endowment policy

Question 28

A contract that promises to pay at the insured death the face amount of the policy plus a sum equal to the policy’s cash value

Answer 28

Face amount plus cash value policy

Question 29

Written on lives of children.

Answer 29

Juvenile insurance

Question 30

Does not require a medical exam and tends to be more expensive than medically underwritten policies

Answer 30

Non medical life ins