Types of life policies

A young father would like a life insurance policy to provide coverage for all five family members at the lowest cost. Which type of policy would he most likely buy?

Family (protection) policy. This type of insurance combines protection for all members of a family into one policy. It usually provides a permanent plan of insurance on the "based insured", and term riders on other members of the family. Because they are all covered under a single policy, there is only one fee.

When the breadwinner that is insured by a family policy dies, what rights are provided to other family members that are covered under the policy?

Family members may convert their term coverage to permanent insurance if requested within the one stated in the policy

Concerning juvenile life insurance what is not a correct statement?

Juvenile life insures the life of a minor. It does not need to be purchased by a minor.

What is an example of a limited-pay life policy

Limited pay whole life premiums are all paid by the time the insure reaches age 65. The policy endows when the insured turns 100. it is the premium paying period that is limited, not maturity.

What is an example of a limited-pay life policy

Limited pay whole life premiums are all paid by the time the insured reaches 65. The policy endows when the insured turns 100z its is the premium paying period that is limited

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

Survivorship life pays on the last death rather than upon the first death.

What isn't true about the convertibility option under a term life insurance policy?

Upon conversion, the death benefit of the permanent policy will be reduced by 50%

Which policy component decreases in decreasing term insurance?

Face amount. Decreasing term policies feature a level premium and a death benefit that decreases each year over the duration of the policy term

One of the advantages of a family life insurance policy that provides coverage for children is that it

May be converted to a permanent insurance for the children without requiring evidence of insurability.

An insured receives a monthly summary for his life insurance policy. He notices that the cash value of the policy is significantly lower this month than it was last month. What type of policy does the insured have?

Variable life policies vary in value because the value is based on the stocks that support the policy.

W owns a policy in which she is covered as the bread-winner with permanent insurance and with decreasing term insurance in the form of a rider. What type of policy is this?

Family income policy.

The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called

Credit life is most often sold by lenders and is term insurance written with a face amount and term that is matched to the amount and length of the loan period.

What rider would not cause the death benefit to increase?

Payor Benefit Rider does not increase the death benefit; it only pays the premium if the payor is disabled or dies.

Which special policy combines decreasing term insurance with whole life insurance to provide the insureds family with a monthly income upon the death of the insured, while maintaining permanent coverage until the end of the income

Family income policy provides monthly income upon death of the insured while maintains permanent coverage until the end of the income payments by combining decreasing term insurance and whole life insurance

Variable life insurance is based on what kind of premium?

Variable life insurance is a level fixed premium investment based product