CH. 9 (Term Life)
Which of the following would be most appropriate for Mortgage Protection Insurance? Select one: a.A 30-year Decreasing Term policy. b.A 30-year level Term policy. c.A Whole Life policy. d.A 30-year Increasing Term policy.
A 30-year Decreasing Term policy.
Renewable Term usually provides for renewal at which of the following times? Select one: a.When the Insured needs to increase the death benefit. b.During the month of the Insured's last birthday prior to policy expiration. c.At policy expiration. d.Within two months of policy lapse.
At policy expiration.
Which of the following permits a Term Policy to be changed to a permanent policy without proof of insurability? Select one: a.Renewability Provision b.Conversion Provision
Conversion Provision
Which Term policy will be the most expensive? Select one: a.Noncovertible and Nonrenewable b.Convertible and Renewable
Convertible and Renewable
What is decreasing with a Decreasing Term Life policy? Select one: a.Face value b.Term c.Premium d.Cash value
Face value
What happens to the premium over the course of a Decreasing Term policy? Select one: a.It increases. b.It remains level and fixed. c.It decreases. d.None of the above.
It remains level and fixed. (PREMIUM stays fixed)
Another name used for Decreasing Term Insurance is: Select one: a.Straight Life b.Mortgage Protection Insurance c.Ordinary Life d.Universal Life
Mortgage Protection Insurance
The Conversion Provision in a Term policy allows the Insured to: Select one: a.Increase the death benefit b.Obtain Whole Life insurance c.Decrease the death benefit d.Change the beneficiary
Obtain Whole Life insurance
Which form of Term insurance requires the Insured to pass a medical exam in order to have a lower cost of renewal? Select one: a.Reentry b.Renewability Clause
Reentry
Which type of insurance is used to pay a mortgage debt if the owner dies? Select one: a.Term b.Whole Life
Term
With a Convertible Term policy, what is required to convert to Whole Life? Select one: a.Proof of insurability. b.Permission from the beneficiary. c.A conversion fee. d.The Insured must pay a higher premium.
The Insured must pay a higher premium.
With Renewable Term Life, the annual premium increases with each renewal for which of the following reasons? Select one: a.Changes to the Insured's credit. b.Changes in the Insured's health. c.A change to the Insured's occupation. d.The Insured's attained age has increased.
The Insured's attained age has increased.
Under an Increasing Term Life Insurance, what will increase over time? Select one: a.The length of the term b.The cash value c.The death benefit d.The premium
The death benefit
How is the settlement handled for a 20-Year Renewable Term policy if the Insured dies in year 15? Select one: a.The death benefit is paid out over the remaining five years. b.The policy is automatically converted to a Whole Life policy. c.The death benefit is paid to the beneficiary upon the Insured's death. d.The policy pays a monthly benefit to the beneficiary for 20 years.
The death benefit is paid to the beneficiary upon the Insured's death.