Types Of Policies Quiz Flashcards
Which of these statements describe a modified endowment contract (MEC) ?
Exceeds the maximum amount of premium that can be paid into a policy and still have it recognized as a life insurance contract
Which of these would be considered a limited pay life policy?
Life paid-up at age 70
Credit life insurance is typically issued with which of the following types of coverage?
Decreasing term
S is close to retiring and would like to purchase a policy that will yield greater gains than bonds, but will still protect the principal with a minimum level or risk. Which product would S be advised to purchase?
Equity index insurance
How long does the coverage normally remain on a limited pay life policy?
Age 100
Which of the following life insurance policies combine term insurance with an investment element?
Universal life
Jay is 35 years old and looking to purchase a whole life insurance policy. Which of the following types of policies will provide the most rapid growth of cash value?
20 pay life
K, age 45 and his wife, age 43 have three children. They purchase a family policy that covers K’s wife to age 65. All of these situations will pay a death benefit EXCEPT:
K’s wife dies at age 66
S, age 40, is looking to buy a life insurance policy that will allow for increases or decreases in coverage as his needs change. The policy best suited for S would be:
Universal life
Universal life insurance is characterized by flexible, premiums, and an adjustable death benefit
The amount of coverage on a group credit life policy is limited to:
The insured’s total loan value
With a group life policy, the amount of insurance on the life of a debtor is limited to the total amount of the insured’s loan
A universal life policy is sometimes referred to as an unbundled life policy because the owner can see the interest earned, cost of the insurance, and the:
Expense charges
The universal life policy is called an unbundled life policy because the policyholder can see the expense charges, the interest earned, and the cost of insurance.
Which of the following is considered an element of a variable life policy?
UEI
Underlying equity investment
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?
Decreasing term policy
A life insurance policy written for a specified period of time with a death benefit that changes regularly according to a schedule is a decreasing term policy
What type of life policy covers two lives and pays the face amount after the first one dies?
Joint life policy
K buys a policy where the premium stays fixed for the first five 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?
Modified whole life
