Whole Life policies

Question 1

What type of life insurance policy provides permanent protection?
A. Whole Life
B. Adjustable life
C. Joint life

Answer 1

Whole Life- permanent

Question 2

What type of premium is charged on a straight life policy? And Whole Life
A. Level premium on the life of the policy
B. Premiums paid for a limited time
C. Lump sum premium
D. Premiums increase yearly

Answer 2

Level premium on the life of the policy

Question 3

A whole life policy that requires that the policy owner only pays premiums for a specific  number of years is known as what kind? 
A. Straight life 
B. Limited pay life
C. Modified whole life
D. Graded whole life

Answer 3

Limited pay whole life

With a 20 pay life policy the insured only pays for 20 years.
The cash value increases faster and fix premiums are higher for the shortened period of time

Question 4

When would a 20 pay whole life policy endow?
A. 65 age
B. 70 age
C. 100 age

Answer 4

100 age

Question 5

If an insured terminates membership in a group life policy, to what type of insurance can ensure convert coverage?
A. Term life
B. Universal life
C. Whole Life

Answer 5

Whole Life

Question 6

Regarding taxation, how does the cash value of a universal life policy accumulate?
A. Tax-deferred
B. Pre taxed

Answer 6

Tax- deferred

Question 7

Which policy allows its policy owners to determine the amount and frequency of premium payments which will adjust the policy face amount? Incorporates flexible premiums and adjustable death benefit. Investment gains usually go towards the cash value.
A. Universal Life
B. Adjustable life
C. Variable universal whole life

Answer 7

Universal Life

Question 8

Which policy are invested in a insurer’s separate Accounts which house stocks and bonds, $market. They have fixed level premiums a guaranteed minimum death benefit. Cash values fluctuate (rate of return) are Not guaranteed, fluctuate according
A. Variable whole life
B. Universal life
C. Variable universal whole life

Answer 8

Variable whole life

Question 9

This whole life policy, cash values can be invested in a variety of separate accounts similar to mutual funds & stocks. The policy owner has flexibility in making premium payments & adjustable death benefits, and a guaranteed minimum death benefit. Gives the insured growth potential for her returns but also potential for loss.
A. Variable Universal Whole Life
B. Modified endowment
C. Variable whole life

Answer 9

Variable universal whole life

Evidence of insurability can be required for an individual when death benefit is increased

Question 10

Death protection component of a universal life policy is expressed as what type of coverage?
A. Annually renewable term
B. Term rider
C. Renewable term

Answer 10

Annually Renewable term

Question 11

What policy has fixed premiums, fixed face amounts, and fixed cash value accumulations?
A. Term life
B. Whole Life

Answer 11

Whole Life

Question 12

This policy will have low premiums in the early years and jumps to higher premiums in the later years. Premiums increase just once.
A. Graded whole life
B. Limited pay life
C. Modified whole life

Answer 12

Modified whole life

Question 13

A policy where the premium stays fixed for the first five years, and then increases in your six and stays level for the remainder of the policy.
A. Straight life
B. Modified whole life

Answer 13

Modified whole life

Question 14

This pays a monthly income from the date of death of the insured to the end of the preselected period. The payment of the face amount of the policy is payable at the end of such preselected.
A. Family income policy
B. Family maintenance policy

Answer 14

Family Maintenance policy

Beneficiary receives the entire face amount of the policy.
If insured dies after the selected., the beneficiary only receives the face value of policy . Whole life & level term policy

Question 15

This policy pays an income beginning at the insured‘s death and continues for a period specified from the date of policy issue. For example G purchased a family ___ policy at age 40, with a 20-year rider period. If she were to die at age 50, G’s family would receive an income for 10 years.
A. Family maintenance policy
B. Family Income policies

Answer 15

Family income policies

Whole life & decreasing term insurance.
Provides monthly income to a beneficiary of death occurs during a specified period after date of purchase.
If insured dies after specified period, beneficiary’s paid face amount only

Question 16

A Return of Premium life insurance policy is?
A. A nonforfeiture 
B. Whole Life and increasing term
C. Interest- sensitive 
D. Variable life

Answer 16

Whole life and increasing term

This whole life insurance with a death benefit rider of increasing term insurance equal to the amount of premiums paid. If the insured dies within the period of term, the beneficiary receive face amount plus the value of all paid premium

Question 17

Life insurance immediately creates an estate upon the death of an insured. Which policy is characterized by a guaranteed minimum death benefit?
A. Universal life
B. Variable life
C. Fixed annuity

Answer 17

Variable life

Variable whole life insurance nature is is death benefit.
If investment performance is poor the death benefit will not be lowered

Question 18

Type of Life insurance allows the policy owner to have level premiums and to also choose from a selection investment options?
A. Modified whole life
B. Variable life
C. Universal life

Answer 18

Variable life

Question 19

What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies?
A. Family maintenance policy
B. Family income policy
C. Survivor policy

Answer 19

Family maintenance policy

Question 20

All of the following actions are possible with universal life but?
A. Policy cash maybe used to pay premiums
B. Premium payments may be at unscheduled times
C. Face amount may be adjusted
D. Premiums may be applied as a credit against income tax

Answer 20

Premiums may be applied as a credit against income tax