Ch 4

Industrial life insurance has a form of life insurance written on your policy is having a face value amount of

3000 or less

Variable Whole Life Insurance can be described as

Both an insurance and securities product

Universal life insurance offers which of these

Flexible premiums and flexible face amount

Life insurance that covers and insurance whole life with level premiums paid over a limited time is called

Limited pay whole life

A life insurance policy that feels a seven day test is considered to be a modified endowment contract this type of policy will

Lose certain tax advantages

A father who dies within three years after purchasing a life insurance policy on his infant daughter can I have a policy premiums waved under which provision

Payor provision

Which is true concerning a variable universal life policy

Policy owner directs where the investment will go and select the amount of the premium payment

Which of these can be altered by the policy owner in an adjustable life insurance policy

Premium payment amount

When is the face amount paid under a joint life and survivor policy

upon death of the last insured

The type of life policy best suited to cover a husband and wife for mortgage protection would be

Joint life

What type of life insurance is characterized as having two insured and matures when the first insured dies

Joint life

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

Modified Whole Life

Which of these characteristics is consistent with a straight whole life policy

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

All of these are characteristics of an adjustable life policy except

face amount can be adjusted using policy dividends

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

20 payment life

What kind of premium does a whole life policy have

Adjustable

Life insurance that allows the death benefit to be modified is known as

Adjustable life

Mortgage protection is usually covered by what type of insurance

Decreasing term

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

Decreasing term

F needs life insurance that provides coverage for only a limited amount of time was a death benefit that changes it regularly according to a schedule what kind of policy is needed

Decreasing term policy

P is looking to purchase a life insurance policy that will pay stayed in the monthly income to his beneficiaries for 20 years after he dies in a lump sum of $20,000 at the end of the 20 year.

Family maintenance policy

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

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

Family maintenance policy

What type of life insurance policy covers a husband and wife as well as any future children for no additional premium

Family plan policy

A modified life policy as similar characteristics and serves the same purpose as

Graded premium whole life

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

Level term

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

Renewable

What type of life policy covers two people in peace upon the death of the last insured

Survivorship

The investment gains from a universal life policy usually goes toward

The cash value

The initial amount of credit life insurance may not exceed

The total amount repayable under the contract of indebtedness

Which type of life policy contains a monthly mortality charge as well as self-directed investment choices

Variable Universal Life

An agent is required to register with FINRA In order to sell which of the following

Variable life

What kind of life insurance offer is a policy owner a cash value that is invested in a separate account

Variable life

A potential client age 40 would like to purchase a whole life policy that will cumulate cash value at a faster rate in the early years of the policy which of these statements made by the producer would be correct

20 pay life accumulates cash value faster than straight life

What kind of life insurance product covers children under their parents policy

A term rider

Q would like to purchase $100,000 of permanent protection on his wife and $50,000 of term coverage on himself under the same policy what kind of policy should Q purchase

A whole life policy with other insured rider

A survivorship life policies procedures are typically used to

Pay estate taxes

What type of permanent life insurance offers a guaranteed minimum face amount and allows for future increases in coverage

Variable life

A life insurance policy that is characterized by flexible premium payments is called

Variable universal life

A life insurance policy that provides a policy owner with cash value along with a level face amount is called

Whole life

Which of these life products is not considered interest sensitive

Modified whole life

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

15-year decreasing term

One a husband and wife are insured jointly under a credit life insurance policy the premium may not exceed

150% of the rate permissible for a single life

Which statement is true regarding a variable whole life policy

A minimum guaranteed death benefit is provided

What advantage does an equity index life insurance policy have over a variable life policy

A minimum guaranteed rate of return

What is to be expected to in modified life policy

An eventual change in premium payments

Ass is covered my whole life policy which insurance product can cover his children

Child term rider

The life insurance policy that offers cash value and is influenced by the S&P with a guaranteed minimum rate of return is called

Equity index life

Life insurance that does not pass the seven day test is called a

Modified endowment contract

K buys a policy where the premium stays fix for the first five years the premium learn increases in your section stays level there after all the while the death benefit remains the same what kind of policy is this

Modified whole life

A husband and wife on a life insurance policy with their son named as beneficiary the wife dies first followed by the husband five years later there's son receive the policies face amount after his father dies what type of policy was around

Survivorship life

He's a life insurance policy that covers multiple insurance and pays the face amount following the death of the last insured is called

Survivorship life