U Can Pass Life Insurance Chapter 2

All of the following statements are correct regarding Credit Life Insurance EXCEPT

A. Benefits are paid to the borrower's beneficiary.

Which of the following is INCORRECT regarding a $100,000, 20-year level term policy?

At the end of 20 years, the policy's cash value will equal 100,000.

Which of the following best describes annually renewable term insurance?

It is level term insurance.

An Employee is joining a group insurance plan. In order to avoid having to prove insurability, what must the employee do?

Join during the open enrollment period.

Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?

Limited pay whole life.

Which of the following policies would be classified as a traditional level premium contract?

Straight Life

All of the following are true regarding a decreasing term policy EXCEPT

The payable premium amount steadily declines throughout the duration of the contract.