Life Insurance Policies
policy states will pay a specified face amount if the insured dies with 20 year period but nothing if death occurs after 20 year. what type of policy?
20 year level term
what type of premium is charge on a straight life policy
a level premium for the life of the insured
who is insured under a juvenile life policy
a minor
policy owner of a whole life insurance policy is also the insured. what age must the insured attain in order to receive the policy face amount?
age 100
whole life policies provide protection until the insured reaches what age
age 100
death protection component of a universal life policy is expressed as what type of coverage
annually renewable term
group life insurance policies are written as what type of insurance
annually renewable term
in variable universal life insurance, to what policy component does the term variable refer
cash value and death benefit
what happens to cash value when a whole life insurance policy matures
cash value is paid to the policy owner
under option B in a universal life policy, what happens to the death benefit
death benefit increases each year by the amount of the cash value increases
borrowed 10,000 on a 5 year note from bank. note is due in installments. what type of life insurance?
decreasing term
type of life insurance best suited to cover mortage
decreasing term
if an employee wants to join group life insurance coverage outside of the open enrollment period, what would the employee have to provide
evidence of insurability
when the amount of insurance is increased in an adjustable life policy, what will the insurer require from the insured
evidence of insurability
a whole policy that requires that the policyowner only pays premiums for a specified number of years is known as what kind of policy
limited- pay whole life
type of whole life insurnace policy only requires a payment of premium at its inception and is insured til age 100
single premium whole life
what type of whole life insurance policy generates immediate cash value
single premium whole life
regarding taxation, how does the cash value of a universal life policy accumulate
tax deferred
what type of life insurance policy provides permanent protection
whole life
what is the main advantage of converting from group life insurance to individual coverage?
evidence of insurability is not required
what policy component must decrease in decreasing term insurance
face amount
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 what time period?
for 20 years or until the insured death, which ever occurs first
whole life insurance policies mature when the insured reaches age of 100. owner of a whole life policy dies at age 80, and there are no outstanding loans on the policy, what portion of the death benefit will be paid to the beneficiary
full death benefit
what type of life insurance policy is life paid up at age 65
limited pay whole life
what are the living benefits of whole life insurance
loan values
what happens to the premium in an annually renewable term life policy
premium increases with each renewal
difference between straight life, limited payment and single premium whole life policies
premium payment mode
what type of life insurance policy offer pure death protection
term
what elements of an adjustable life policy can be changed by the policy owners
the amount and payment period of the premium, the face amount, and the period for protection
who owns a group life insurance contract?
the employer or sponser
who is entitled to the cash value in a life insurance policy
the policy owner
cash value of policy is lower this month than last. what type of policy is this
variable
when would a 20- pay whole life policy endow
when the insured reaches age 100
when does an adjustable life policy accumulate cash value
when the premiums paid are most than the cost of the policy
what is the purpose of establishing the target premium for a universal life policy
to prevent policy from lapsing
what does level refer to in level term insurance
face amount
what type of life insurance policies can the policy owner skip premium payment without the policy lapsing
universal life
if an insured terminates membership group life insurance, to what type of insurance can the insured convert the coverage
whole life
what type of policy issues certificates of insurance to the insured
group policy
universal life policies have two types of interest rates
guaranteed and current
how is the premium determined in a joint life insurance policy
the premium is based on the average age of the insured
why are policy loans not available on term insurance
there is no cash value to borrow against
what universal life option has a gradually increasing cash value and a level death benefit
option A
what are the death benefit options in universal life policies
option A - level death benefit Option B- increasing death benefit
what type of policy is typically issued without proof of insurability from the insured
group policy
what are the characteristics of the group that underwriters will consider before issuing a group life policy
group's purpose, size, financial strength and turnover
in term policies, what happens to the premium through the term of the policy
premium remains level