Life insurance Policies
When an employee terminates coverage under a group insurance policy, coverage continues in force
for 31 days
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
For 20 years or until death, whichever occurs first
A return of premium term policy is written as wheat type of term coverage?
Increasing
An insured purchased a variable life insurance policy with a face amount of $50,000. Over the life of the policy, stock performance declined and the cash value fell to $10,000. if the insured dies, how much will be paid out?
$50,000
Which characteristic makes whole life permanent protection
Coverage until death or age 100
Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?
Limited Pay whole life
An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is incorrect?
The insured may choose to convert to term or permanent individual coverage
The policyowner of a universal life policy may skip paying the premium and the policy will not lapse as long as
The policy contains sufficient cash value to cover the cost of the insurance
All of the following could own group life insurance except
A group needing low-cost life insurance
Which of the following is incorrect regarding a $100,000 20-year level term policy?
At the end of 20 years, the policy's cash value will equal 100K
Which of the following statements about group life is correct?
The cost of coverage is based on the ratio of men and women in the group
Which of the following types of insurance policies is most commonly used in credit life insurance?
Decreasing term
What type of premium do both universal life and variable universal life policies have?
Flexible
Which of the following is not a type of whole life insurance?d
Level term
Which option for universal life beneficiary to collect both the death benefit and cash value upon the death of the insured?
Option B
Which of the following statements is correct regarding a whole life policy?
The policyowner is entitled to policy loans
All of the following are true about variable products except
The premiums are invested in the insurer's general account
Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die?
Joint life
the policy owner of an adjustable life policy wants to increase the death benefit. WHich of the following statements is correct regarding this change?
The death benefit can be increased by providing evidence of insurability
A group of 15 skydivers meet at a seminar and begin talking about life insurance during a break. Because it is expensive to get individual life insurance, they decide to band together to form a small group so that they will be eligible. They apply for small group life insurance and are rejected. Why?
The purpose of the group was to purchase life insurance
An individual purchased a 100K joint life policy on himself and his wife. Eight years later, he died in a car accident. how much will his wife receive from the policy?
100K
Which of the following best describes annually renewable term insurance
It is level term insurance
In an Adjustable Life policy all of the following can be changed by the policy owner EXCEPT
Type of investment
Which of the following life insurance policies would be considered interest sensitive?
Universal life
Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?
Universal life -Option A
Which of the following is an example of a limited pay life policy?
Life Paid-up at age 65
Annually renewable term polices provide a level death benefit for a premium that
increases annually
A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?
Level term
The death protection component of universal life insurance is always
Annually renewable term
A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?
Level Term
All of the following are characteristics of group life insurance Except
Premiums are determined by the age, sex, and occupation of each individual certificate holder
To sell variable life insurance policies, an agent must receive all of the following EXCEPT
SEC registration
All of the following types of term policies have face amounts that change during the policy term except
Renewable
At age 30, an applicant wants to start an insurance program, but realizing that his insurance needs will likely change, he wants a policy that can be modified to accommodate those changes as they occur. Which of the following policies would most likely fit his needs?
Adjustable life
