Life Insurance Policies
What is a correct statement that can be made about group life?
The cost of coverage is based on the ratio of men and women in the group.
What statement is true about group life?
The cost of coverage is based on the ratio of men and women in the group.
An adjustable life policy owner can change which policy features?
The coverage period
The policy owner of an adjustable life policy wants to increase the death benefit. What statement can be true regarding this change?
The death benefit can be increased by providing evidence of insurability
A flexible premium universal life insurance policy must provide a grace period of?
30 days
A straight life policy has what type of premium?
A level annual premium for the life of the insured
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. what policy would most likely fit his needs?
Adjustable Life
The LEAST expensive first year premium is found in what policy?
Annually Renewable Term
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.
What policy is characterized by a provision where the premiums are lower in the early years of the policy and increase over time to a point where they become level for the remainder of the policy?
Graded premium
What describes annually renewable term insurance?
It is level term insurance
What is an example of a limited pay life policy?
Life Paid-up at Age 65
An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?
Limited pay life
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
If an employee wants to enter the group outside of the open enrollment period, to reduce adverse selection, the insurer may?
Require evidence of insurability
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
Required a premium increase each renewal
To sell variable life insurance policies, an agent must not receive?
SEC registration
What policy would be classified as a traditional level premium contract?
Straight Life
What is NOT generally considered when underwriting group insurance?
The insureds' medical history
In an adjustable life policy what can't be changed by the policy owner?
The type of investment
What is not a characteristic of a group life insurance plan?
There is a requirement to prove insurability on the part of the participants.
