Types of Life Insurance Policies QUIZ

An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term?

The insured may renew the policy for another 10 years, but at a higher premium rate.

Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?

Universal Life - Option A

In a survivorship life policy, when does the insurer pay the death benefit?

Upon the last death

The term "fixed" in a fixed annuity refers to all of the following EXCEPT

death benefit

A lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. What type of annuity products are they likely to use to provide these benefits?

Immediate annuity

Equity indexed annuities

Seek higher returns

What is the purpose of establishing the target premium for a universal life policy?

To keep the policy in force

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

Which of the following is NOT true regarding the annuitant?

The annuitant cannot be the same person as the annuity owner.

If an agent wishes to sell variable life policies, what license must the agent obtain?

securities

All of the following are true about variable products EXCEPT

the premiums are invested in the insurer's general account

All other factors being equal, the least expensive first-year premium payment is found in a (blank)

Annually renewable term

During partial withdrawal from a universal life policy, which portion will be taxed?

Interest

Which statement is NOT true regarding a Straight Life policy?

Its premium steadily decreases over time, in response to its growing cash value.

A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured. Which policy is that?

Joint Life Policy