Life insurance Policies Quiz
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. Which of the following policies would most likely fit his needs?
Adjustable Life
Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be
Adjusted to the insured's age at the time of renewal
An employee quits his job and converts his group policy to an individual policy; the premium for the individual policy will be based on his
Attained age
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
To sell variable life insurance policies, an agent must receive all of the following EXCEPT
SEC registration
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 insured's age 100 is called
Single premium whole life
Which of the following statements about group life is correct?
The cost of coverage is based on the ratio of men and women in the group.
An insured buys a 5-year level premium term policy with a face amount of $10,000. The policy also contains renewability and convertibility options. When the insured renews the policy in 5 years, what will happen to the premium?
The premium will remain level during the entire level premium term policy period. If the policy renews at the end of the term, the premium will be based on the insured's attained age at the time of renewal.
Which policy component decreases in decreasing term insurance?
Face amount
A group of 15 skydivers met at a seminar and began talking about life insurance during a break. Because it was expensive to get individual life insurance, they decided to band together to form a small group so that they could qualify for group life insurance. After they applied for group life insurance, they were rejected. Why?
The purpose of the group was to purchase life insurance.
Which of the following Life Insurance policies would be considered interest sensitive?
Universal Life
Which of the following is called a "second-to-die" policy?
survivorship life
An Adjustable Life policyowner can change which of the following policy features?
the coverage period
Which of the following is NOT true regarding a Variable Universal Life policy?
the death benefit is fixed
