Insurance Licensing Chapter 2
It will increase because the insured will be 5-years older than when the policy was originally purchased
An insured buys a 5-year level premium term policy with a face amount of $ 10,000. The policy also contains renewability and convertible options. When insured renews the policy in 5-years, what will happen to the premium?
Interest- Sensitive Whole Life
An insured purchased a life insurance policy. the agent told him that depending upon the company's investment and expense factors, the cash value could change from those shown in the policy issue time. The policy is a/an
Interest
During partial withdrawal from a universal life policy, which part will be taxed?
Adjusted to the insured's age at the time of renewal
Level Term Insurance provides a level death benefit and level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be
Convertible Term Policy
The type of policy that can be changed from one that does not accumulate cash value to the one that does is a
Policyowner
Which of the following has the right to convert the existing term coverage to permanent insurance?
Universal life
Which of the following policies allows the policyowner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount?
Variable Annuity
Which of the following requires a securities license?
Required a premium increase each renewal
A man plans to purchase a $ 100,000 Annually Renewable term life policy to provide additional protection until his children finished college. He discovered that his policy
A level annual premium for the life of the insured
A straight life policy has what type of premium?
Annually renewable term policy with a cash value account
A universal life insurance policy is best described as a/ an
Flexible Premium Deferred Annuity
The annuity purchased with multiple payment, whose benefit is paid more than one year after the purchase is known as which type of annuity?
Age 100
The insured is also the policyowner of a whole life policy. What age must the insured achieve to attain to receive the policy's face amount?
For 20 years or until the insured's death, whichever occurs first.
Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid
Coverage until death or age 100
What characteristic makes whole life permanent protection?
Universal life
Which kind of policy allowed withdrawals or partial surrenders?
It is level term insurance
Which of the following best describes annually renewable term insurance?
Teh performance of the portfolio
Which of the following determines the cash value of a variable life policy?
Annuity
Which of the following products will protect an individual from outliving their money?
Whole life
Which of the following types of policies will provide permanent protection?
