Life Insurance Policies
Decreasing term
An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?
Single premium whole life
An 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 insureds age 100 is called
Coverage period
An adjustable life policy owner can change which of the following policy features?
Insures the life of a debtor
Credit Life insurance
The payable premium amount steadily declines throughout the duration of the contract
All of the following are true regarding a decreasing term policy EXCEPT
There is a requirement to prove insurability on the part of the participants
All of the following are characteristics of a group life insurance plan EXCEPT
Guaranteed and Current
A Universal Life insurance policy has two types of interest rates that are called
Insurance and cash account
What are the two components of a universal policy?
Adjustable Life
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?
Straight Life
Which of the following policies would be classified as a traditional level premium contract?
A group needing low-cost life insurance
All of the following could own group life insurance EXCEPT
Limited-pay Life
An insured has a life insurance policy that requires him to only pay premiums for a specified number of years util the policy is paid up. What kind of policy is it?
Juvenile Life is classified as any life insurance purchased by a minor.
Concerning Juvenile Life Insurance which of the following statements is incorrect?
For 31 days
When an employee terminates coverage under a group insurance policy coverage continues in force
Life paid-up a age 65
Which of the following is an example of a limited-pay life policy?
Its premium steadily decreases over time, in response to its growing cash value.
Which statement is NOT true regarding a Straight Life policy?
The purpose of the group was to purchase life insurance.
A group of 15 sky divers met at a seminar and began talking about life insurance during a break Because it was expensive to get individual life insurance, they decide to band together to form a small group. they get denied because?
Required a premium increase each renewal.
A man decided to purchase a $100,000 Annually Renewable Term life policy to provide additional protection until his children finished college. He discovered that his policy
Increases annually
Annually renewable term policies provide a level death benefit for a premium that
Require evidence of insurability
If an employee wants to enter the group outside of the open enrollment period, to reduce adverse selection, the insurer may
Limited pay whole life
Your client wants both protection and savings from the insurance, and is willing to pay premiums unill retirement at age 65. What would be the right policy for this client?
Joint life policy
A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured. Which policy is that?
Upon conversation, the death benefit of the permanent policy will be reduced by 50%.
All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT
Lower
All other factors being equal, what would the premium be life in a survivorship life policy as compared to the premium in a joint life policy?
The beneficiary
In a group life insurance policy, the employer may select all of the following EXCEPT
The type of investment
In an adjustable life policy all of the following can be changed by the policy owner EXCEPT
Joint Life
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?
Re-entry
An insured owns a term policy with a guarenteed renewable option. when the end of the policy draws near, the insured answers medical questions in order to prove insurability and qualifies for a discounted premium rate. Which option best describes this scenario?
The death benefit can be increased by providing evidence of insurability
The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?
Creditor is the policy owner
Which of the following is TRUE about credit life insurance?
