Life Policies

What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies?

Family Maintenance Policy

K pays on a $20,000 20-year Endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary

$20,000 death benefit

A 15-year mortgage is best protected by what kind of life policy?

15-year decreasing term

What type of policy would offer a 40-year old the quickest accumulation of cash value?

20-pay life

The Combination of Whole Life and _____ Term insurance is referred to as a Family Income Policy

Decreasing: A Family Income Policy is a combination of Whole Life and Decreasing Term insurance

P owns a $25,000 Life policy that pays the face amount to him if he lives to age 70, or to his beneficiary is he dies before age 70. What kind of policy does P own?

Endowment at age 70

Which of these needs is satisfied by Adjustable Life insurance?

Insured's need for flexible premiums

What type of life policy covers two lives and pats the face amount after the first one dies?

Joint life policy

Which of these would be considered a Limited-Pay Life policy?

Life Paid-Up at Age 70

When a life insurance policy exceeds certain IRS table values, the result would create which of the following?

Modified Endowment Contract (MEC)

J is issued a Life Insurance policy with a death benefit of $100,000. She pays $600 per year in premium for the first 5 years. The premium then increases to $900 per year in the sixth year, and remains level thereafter. The policy's death benefit also remains at $100,000. Which type of Life Insurance policy is this?

Modified Premium Life

K is shopping for a permanent life insurance policy that will offer her the MOST protection per dollar of annual premium. Which of these policies best fits her needs?

Straight life

T would like to be assured $10,000 is available in 10 years to replace a roof on his house. What kind of $10,000 policy should T purchase?

Ten-Year Endowment

What type of life insurance gives the greatest amount of coverage for a limited period of time

Term life

Whole Life insurance is sometimes referred to as Straight Life. What does the word Straight indicate when using this phrase

The duration of premium payments

Which of the following life insurance policies combine term insurance with an investment element

Universal Life

Life insurance immediately creates an estate upon the death of an insured. Which of the following policies is characterized by a guaranteed minimum death benefit

Variable Life

A(n) ____ Life policy combines investment choices with a form of Term coverage

Variable Universal

S owns a life insurance policy with cash values that fluctuate according to the underlying investment performance of common stocks. Which of these policies does S own?

Variable Whole Life

When is the face amount of a Whole Life policy paid?

When the insured dies or at the policy's maturity date, whichever happens first

If a 10-Year Term Life policy contains a Renewability provision, the policy will renew

Without evidence of insurability

Which of the following featured of a group term life enables an individual to leave the group and continue insurance without providing evidence of insurability

conversion privilege

a ___ term life policy is normally used when covering an insured mortgage balance

decreasing

A universal life policy is sometimes referred to as an unbundled life policy bc the owner can see the interest earned, cost of insurance, and the

expense charges

All of these are characteristics of an Adjustable Life policy EXCEPT

face amount can be adjusted using policy dividends

What kind of premium does a Whole Life policy have?

level

A life insurance policy that provided a policyowner with cash value along with a level face amount is called

whole life

All of these insurance products require an agent to have proper FINRA securities registration in order to sell them EXCEPT for

Modified Whole Life

Whole Life insurance policies are contractually guaranteed to provide each of the following EXCEPT

partial withdrawal features beyond a surrender charge period

T has a term policy that allows him to continue the coverage after expiration of the initial policy period. What type of term coverage is this?

renewable

The cash value in an _________ Life policy may fluctuate to reflect changing assumptions regarding mortality cost, interest, and expense factors

universal

When is the face amount paid under a Joint Life and Survivor policy?

upon death of the last insured

A ___ Life policy offers the owner investment in products such as money-market funds, long term bonds and equities

variable