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

Universal life

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

Universal life

When is the face amount of a Whole Life policy paid?

When the insured dies or at the policy's maturity date, whichever happens first

A father who dies within 3 years after purchasing a life insurance policy on his infant daugther can have the policy premiums waived under which provision?

payor provision

K pays on 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?

$20,000 death benefit

What type of policy would offer a 40-year old the quickest accumulation of cash value?

20-pay life

What type of life policy covers two lives and pays the face amount after the first one dies?

Joint life policy

K is looking to purchase Renewable Term insurance. Which of these types of Term insurance may be renewable?

Level

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

Limited pay life

Which type of policy is considered to be overfunded, as stated by IRS guidelines?

Modified endowment contract

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

Single premium

A universal life policy is sometimes referred to as an unbundled life policy because the owner can see the interest earned, cost of insurance, and the

expense charges

Term insurance has which of the following characteristics?

expires at the end of the policy period

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

increase face amount

What kind of premium does a Whole Life policy have?

level

D needs life insurance that provides coverage for only a limited amount of time while also paying the lowest possible premium. What kind of policy is needed?

level term

Which statement is correct regarding the premium payment schedule for whole life policies?

premiums are payable throughout the insured's lifetime/ coverage lasts until death of the insured

K purchased a Life insurance policy in 1986 which paid 10% interest in the early years of the policy. Twenty years after the purchase, she received a notice from the insurer stating that the policy will soon terminate unless a much-higher premium is paid because of falling interest rates. This type of policy is known as a(n) _________ life policy.

universal

a term life insurance policy matures:

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

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?

variable whole life

What type of insurance offers permanent life coverage with premiums that are payable for life?

whole 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?

20 pay life

N is a 40-year old applicant who would like to retire at age 70. He is looking to buy a life insurance policy with level premiums, permanent protection, and be paid-up at retirement. Which of these should N purchase?

30 pay life

Which of these life products is NOt considered interest-sensitive

modified whole life

What type of life policy covers two people and pays upon the death of the last insured?

survivorship

The amount of coverage on a group credit life policy is limited to:

the insured's total loan value

The cash value in an life policy may fluctuate to reflect changing assumptions reading mortality cost, interest, and expense factors.

universal

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

upon death of the last insured

In order to sell a ——- life policy a producer is required to register with the financial industry regulatory authority (FINRA)

varable

A(n) Life policy offers the owner investment in products such as money-market funds, long-term bonds and equities

variable

Life insurance immediately creates an estate upon the death of an insured. which of the following policies is characterized by guaranteed minimum death benefit?

variable life

Which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options?

variable 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?

variable universal life

A life policy that contains a monthly mortality charge as well as self-directed investment choices is called a(n)

variable universal life policy

At what point does a whole life insurance policy endow?

when the cash value equals the death benefit

What kind of life policy either pays the face value upon the death of the insured or when the insured reaches age 100?

whole life

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

conversion provision

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

convertible term

the combination of whole life and term insurance is referred to as a family income policy

decreasing

When a life insurance policy exceeds certain IRS table values, the result would create which of the following?

Modified endowment contract (MEC)

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

family maintenance policy

Whole Life insurance policies are contractually guaranteed to provide each of the following EXCEPT

partial withdrawal features beyond a surrender charge period

k is shopping for a permanent life insurance policy that will offer her most protection per dollar of annual premium. Which of these policies best fits her needs?

straight life

What type of life insurance are credit policies issued as?

term

The investment gains from a Universal Life Policy usually go toward

the cash value

The Most important factor to consider when determining to covert term insurance at the insured's attained age or the insured's original age is:

the cost

Whole life insurance is sometimes referred to as "straight life" what does the word "straight" indicate when using this phrase?

the duration of premium payments

Under a Renewable Term policy,

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

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

third-party with no insurable interest

S is covered by a whole life policy. which insurance product can cover his children

child term rider

A Universal Life policy is sometimes referred to as an unbundled life policy because the owner can see the interest earned, expense charges, and the

cost of insurance

Credit life insurance is typically issued with which of the following types of coverage?

decreasing term

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

decreasing term

Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it?

decreasing term

Additional coverage can be added to a Whole Life policy by adding a(n)

decreasing term rider

All of these are characteristics of an Adjustable Life policy EXCEPT

face amount can be adjusted using policy dividends

What does a Face Amount Plus Cash Value Policy supposed to pay at the insured's death?

face amount plus the policy's cash value

P is looking to purchase a life insurance policy that will pay a stated monthly income to his beneficiaries for 20 years after he dies and a lump sum of $20,000 at the end of that 20 year period. What type of policy should P purchase?

family maintenance policy

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

Underlying equity investment

A 15-year mortgage is best protected by what kind of life policy?

15-year decreasing term

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

AD&D

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?

Family Maintenance policy

K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind of policy is this?

Modified whole life

which is true concerning a variable universal life policy?

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

T would like to be assured $10,000 is available in 10 years to replace a roof on his house. What kind of $10,000 policy should T purchase?

Ten-year endowmet

Q is looking to buy a life insurance policy that will provide the greatest amount of protection for a temporary time period. Which of these policies should Q purchase?

Term life

Which of these is an element of a variable life policy?

a fixed level premium

which statement is true regarding a variable wholelife policy?

a minimum guaranteed death benefit is provided

How long does the coverage normally remain on a limited-pay life policy?

age 100

An architecture firm would stand to lose a lot of money in the event of the death of its project manager. Which type of policy should the firm purchase on its project manager?

key person insurance

Variable Whole Life Insurance can be described as

both an insurance and securities product

Under an interest sensitive whole life policy

cash values are determined by interest rates

Which of these needs is satisfied by Adjustable Life insurance?

insured need flexible premiums

credit life insurance is

issued in an amount not to exceed the amount of the loan

Which of the following information is NOT required to be included in a whole life policy?

policy's guaranteed dividend table

a limited-pay life policy has:

premium payments limited to a specified number of years

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

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

T has a term policy that allows him to continue the coverage after expiration of the initial policy period. What type of term coverage is this?

renewable

What type of life insurance incorporates flexible premiums and an adjustable death benefit?

universal life

Y purchased $100,000 worth of permanent protection on himself and $50,000 worth of 10-year Term coverage for his wife on the same policy. Which of these policies did Y purchase?

whole life policy with an other insured rider

A policy that becomes a modified endowment contract (MEC):

will lose many of its tax advantage

All of these insurance products require an agent to have proper FINRA securities registration in order to sell them EXCEPT for

Modified whole life