Chapter 2 types of life policies

The insured is also the policy owner of a whole life policy. What age must the insured obtain in order to receive the policy face amount?

100

A straight life policy has what type of premium?

A level annual premium for the life of the insured

the premium is level which of the following is incorrect regarding $100,000.20 year level term policy?

At the end of 20 years, the policies cash value will equal $100,000

What characteristics makes whole life permanent protection

Coverage until death or age 100

If an annuitant dies before annuitization occurs, what will the beneficiary receive?

Either the amount paid into the plan or the cash value of the plan, whichever is the greater amount

What does "level" referred to in level term insurance?

Face amounts

Which of the following terms best describe the coverage provided by term policies, as compared to any other form of protection?

Greatest

A lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. What type of inventory products are they likely to use to provide these benefits?

Immediate annuity

What are The two components of a universal policy

Insurance and cash account

Which of the following best describes annually renewable term insurance?

It is level term insurance

And insured buys a five-year level premium term policy with a face amount of $10,000. The policy also contains renewability and convertibility options. When the insured renews the policy in five years, what will happen to the premium?

It will increase because the insured will be five years older than when the policy was originally purchased

A policy will pay the death benefit if the insured dies during the 20 year premium pain period,And nothing if death occurs after the 20 year period. What type of policy is this?

Level term

Which of the following is not a type of whole life insurance

Level term

Which of the following is not one of the three basic types of coverage that are available, based on how the face amount changes during the policy term?

Renewable

A man decided to purchase hundred thousand dollar annually renewable term life policy to provide additional protection until his children finish college. He discovered that his policy

Required a premium increase each renewal

A life insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured, and matures at the insured's age 100 is called

Single premium whole life

Which of the following is not true regarding the Annuitant?

The annuitant cannot be the same person as the annuity owner.

Which type of life insurance policy allows the policy owner to pay more or less than the plan premium?

Universal life

All of the following are true regarding the convertibility option under a term life insurance policy except

Upon conversion the death benefit of the permanent policy will be reduced by 50%.

A universal life insurance policy is best described as a /an

annually renewable term policy with a cash value account

Which of the following types of insurance policies would provide the greatest amount of protection for a temporary period during which an insured will have limited financial resources?

term

Which of the following is true regarding the premium and term policies?

the premium is level

Which of the following is true regarding the premium in term policies?

the premium is level