3 - Life Insurance Policies - Provisions, Options and Riders part 1
A 15-year mortgage is best protected by what kind of life policy?
*15-year decreasing term (A 15-year mortgage is best protected by a 15-year decreasing term policy.)
What kind of life insurance starts out as temporary coverage but can be later modified to permanent coverage without evidence of insurability?
Convertible Term
The Universal Life Policy is called an unbundled Life Policy because the policyholder can see the expense charges, the interest earned, and the:
Cost of insurance
What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies?
Family Maintenance Policy
L, aged 50, and L's spouse, 48, have one natural child and one adopted child. They purchase a Family Policy that covers L's spouse to age 65. A death benefit will NOT be paid in which of the following circumstances?
L's spouse dies at age 66.
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 of these life products is NOT considered interest-sensitive?
Modified Whole Life
How long does the coverage normally remain on a limited-pay life policy?
age 100 Even though the premium payments are limited to a certain period, the insurance protection extends until the insured's death, or to age 100.
The investment gains from a Universal Life Policy usually go toward:
the cash value In a Universal Life Policy, income is usually directed toward the cash value.
Under a Renewable Term policy,
the renewal premium is calculated on the basis of the insured's attained age
Which statement about a whole life policy is correct?
"Cash value may be borrowed against". One feature of whole life policies is that the policyowner may borrow against the cash value
S is close to retiring and would like to purchase a policy that will yield greater gains than bonds, but will still protect the principal with a minimum level or risk. Which product would S be advised to purchase?
Equity index insurance
