Life Insurance Policies

What type of life insurance is most commonly used for group plans?

annually renewable term

Which of the following is true regarding term insurance?

if the insured dies after the end of the term, there is no death benefit to the beneficiary

With a traditional whole life policy, the death benefit

remains constant over time

In a single employer group plan, what is the name of a document that is issued to the employer?

master contract

If an agent wishes to sell variable life policies, what license must the agent obtain in addition to a life insurance license?

securities

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

single premium whole life

The insured is also the policyowner of a whole life policy. What age must the insured attain in order to receive the policy's face amount?

100

A graded premium life policy is a modified form of what type of insurance?

whole life

An annually renewable term policy

renews each year with an increased premium

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

When the insured purchased a new home he wanted to purchase a life insurance policy that would protect his family against losing the home should he die before the mortgage was paid. The most inexpensive type of policy that would accomplish this need would be

decreasing term

Which of the following is an example of a limited-pay life policy?

life paid-up at age 65

An insured receives a monthly summary regarding his life insurance policy. He notices that the cash value of the policy is significantly lower this month than it was last month. What type of policy does he have?

variable

A policy that allows the beneficiary to collect both the death benefit and cash value upon the death of the insured is

Universal life, Option B

Who is the policyowner in credit life insurance?

creditor