Xcel Solutions Chapter 3 "Life Policy" Question Review

both an insurance and securities product

Variable whole life insurance can be described as?

The insured may extend the coverage period

What advantage does the renewability feature give to a term policy?

Face amount plus the policy's cash value

What does a face amount plus cash value policy pay upon the insured's death?

Family Maintenance Policy

What kind of life insurance policy pays a specified monthly income to a beneficiary for 30 years and then pays a lump sum benefit at the end of that 30 years?

Convertible Term

What kind of life insurance starts out as temporary coverage but can be later modified to permanent coverage without evidence of insurability?

Term

What type of life insurance are credit policies issued as?

Decreasing Term

What type of life policy has a death benefit that adjust periodically and is written for a specific period of time?

Underlying equity investments

Which of the following is considered an element of a Variable life policy?

Conversion Privilege

Which of the following features of a group Term Life policy enables an individual to leave the group and continue his or her insurance without providing evidence of insurability?

K's wife dies at age 66

K, at age 45, and his wife, age 43, have three children. They purchase a Family Policy that covers K's wife to age 65. All of these situations will pay a death benefit EXCEPT.

Variable

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

Variable Life Insurance

A life policy with a death benefit and cash value that can fluctuate according to the performance of its underlying investment portfolio is referred to as;

Upon the insured's death during the term of the policy

A term life insurance policy matures?

does not guarantee a return on investment accounts

A variable insurance policy

Decreasing term rider

Additional coverage can be added to a whole life policy by adding?

Face amount can just be adjusted using policy dividends

All of these are characteristics of an Adjustable life policy except?

The premiums can be lowered and raised based off investment performance

All of these statements about Equity Indexed Life Insurance are correct, EXCEPT;

When the cash value equals the death benefit

At what point does a Whole life insurance policy endow?

10 years

G purchased a Family income policy at age 40. The policy has a 20-year rider period. If G were to die at age 50, how long would G's family receive income?

Variable

In order to sell a __________. Life policy, a producer is required to register with the Financial Industry Regulatory Authority (FINRA)

20-pay life

J is 35-years old and looking to purchase a whole life insurance policy. Which of the following types of policies will provide the most rapid growth of cash value?

Straight 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?

Variable Life Insurance

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?

Limited Pay Life

Life insurance that covers an insured's whole life with level premiums paid over a limited time is called?

Equity index insurance

S is close to retiring and would like to purchase a policy that will yield greater gains than bonds, but will still protect the principle with a minimum level or risk. Which product would S be advised to purchase?

Variable Whole Life Insurance

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?

Universal Life

S, age 40, is looking to be a Life Insurance Policy that would allow for increases or decreases in coverage as his needs change. The policy that would best suit S is;

third party with no insurable interest

Stranger-Owned Life Insurance (STOLI) is when a person purchases life insurance only to sell to an;

The cash value

The investment gains from a Universal Life Policy usually go toward

The renewal premium is calculated on the basis of the insured's attained age

Under a renewable term policy

Conversion Provision

When a policyowner exchanges a term policy for a whole life policy without providing proof or good health, which of these apply?

upon death of the last insured

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

Policyowner controls where the investment will go and selects the amount of the premium payment

Which is true concerning a Variable Universal Life Policy?

Universal Life

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

increase face amount

Which of the following actions require a policyowner to provide proof of insurability in an adjustable life policy?

$20,000 death benefit

K pays 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?

Family Maintenance Policy

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

Policy's guaranteed dividend table

Which of the following information is NOT required to be included in a Whole Life Policy?

Variable Universal Life

Which of the following policies is characterized by a flexible premium and death benefit and allows the policyowner control of the investment aspect of the plan?

Single Premium

Which of the following types of permanent life insurance policies offer the highest initial cash value?

AD&D

Which of the following types of polices pays a benefit if the insured goes blind?

Premiums are payable for as long as there is insurance coverage in force

Which of these characteristics is consistent with a Straight Life Policy?

Insured's need for flexible premiums

Which of these needs is satisfied by Adjustable life insurance?

Decreasing Term

Which of these types of policies may NOT have the automatic premium loan provision attached to it?

Conversion

Which provision allows the policyowner to change a term life policy to a permanent one without providing proof of good health?

Partial withdrawal features beyond a surrender charge period

Whole life insurance policies are contractually guaranteed to provide each of the following except?