Life Insurance Policies Chapter Quiz

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?

Age 100.

Which of the following is the beneficiary in credit life insurance?

Creditor.

Credit life insurance is usually written as what type of policy?

Decreasing term.

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

Life paid-up at age 65.

Which of the following is true regarding a joint life policy?

Premium is based on the average age of the insured.

An annually renewable term policy?

Renews each year with an increased premium.

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.

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.

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 tis 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.

Which type of life insurance policy generates immediate cash value?

Single premium whole life.

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.

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.

An individual owns an adjustable life policy. Sometime in the future he 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.