Types of life insurance policies

All of these are valid options for an Adjustable Life Policy EXCEPT -The policy's premium can be increased or decreased -The policy's death benefit can be increased or decreased -A nonforfeiture option can be used to increase the death benefit -The policy's protection period can be modified

A nonforfeiture option can be used to increase the death benefit

Jonas is a whole life insurance policyowner and would like to add coverage for his two children. Which of the following products would allow him to accomplish this?

Child term rider

Peter has a policy where 80% to 90% of the premium is invested in traditional fixed income securities and the remainder of the premium is invested in contracts tied to a stipulated stock index. What kind of policy?

Equity index whole life

All of these are characteristics of a universal life insurance policy EXCEPT Flexible death benefit Fixed surrender value Flexible premiums Builds cash value

Fixed surrender value

Shirley has a $500,000 10-year non-renewable level term life policy. If she dies 15 years after the policy's inception date, how much will her beneficiary receive?

Nothing

Premium payments for a Universal life policy NOT used for

Separate account investments (Premium payments for a Universal life policy are NOT used for separate account investments.)

Which policy does NOT build cash value?

Term

Krissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000.

The face amount and premium will remain constant over the 10-year period

The statement which best describes the relationship between the premiums of a whole life policy and the premium payment period is

The shorter the payment period, the lower the premium

Joe has a life insurance policy that has a face amount of $300,000. After a number of years, the policy's cash value accumulates to $50,000 and the face amount becomes $350,000. What kind of policy is this?

Universal Life policy

Best example of a limited pay life insurance policy

Whole life policy with premiums paid up after 20 years

A Modified Endowment Contract (MEC) is best described as

a life insurance contract which accumulates cash values higher than the IRS will allow

Decreasing term life insurance is often used to

cover a home mortgage

Level premium permanent insurance accumulates a reserve that will eventually

equal the face amount of the policy

When a decreasing term policy is purchased, it contains a decreasing death benefit and

level premiums

Variable universal policy

life insurance that offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested

The premium for a Modified whole life policy is

lower than the typical during the first few years and then higher than typical for the remainder

What is the automatic continuance of insurance coverage referred to as

renewal

A securities license is required for a life insurance producer to sell what type of insurance?

variable life insurance

Shawn, Mike, and Dave are brothers who have a $100,000 "first to die" joint life policy covering all three of their lives. If Mike dies first, the policy proceeds

will no longer provide insurance protection. In this situation, if Mike dies first, the policy proceeds will no longer provide insurance protection