Chap 2: Types of Life Policies

The insured is also the policy of a whole life policy. What age must the insured attain in order to receive the policy's face amount?

100 years old

Which of the following is TRUE regarding the annuity period?

It may last for a lifetime of the annuitant.

What is NOT true regarding a Straight Life policy?

Its premium steadily decreases over tie, in response to its growing cash value.

Which of the following statements is correct regarding a whole life policy?

Policyowner is entitled to policy loans

An individual purchased a $100,000 Joint life policy on himself and his wife. Eight years later, he died in an auto accident. A. How much will the wife receive from the policy? B. Why?

A. $100,000 B. Joint policies= death benefit is paid upon the FIRST death only

To sell variable life insurance policies, A. an agent must receive all of the following EXCEPT B. What is required to sell variable life insurance policies?

A. SEC registration B. a. be registered with FINRA b. a securities license c. a life insurance license

"Level" refers to what in level term insurance?

Face amount

Premium of a survivorship life policy compared to joint policy would be...

Higher

An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What policy is it?

Limited-pay Life

Policy that can be changed from one that doesn't accumulate cash value to one that does is a...

Convertible Term Policy

What characteristic makes whole life permanent protection?

Coverage until death or age 100 (whole life policies = permanent protection)

For variable products, underlying assets must be kept in a(n)

Separate account

Insurance policy that only requires a payment of premium at its inception, provides protection for the life of the insured, and matures at the insured's age 100 is called...

Single Premium whole life

The annuity owner dies while the annuity is still in the accumulation stage. Which of the following is TRUE?

The beneficiary will receive the greater of the money paid into the annuity or the cash value.

Which policy allows the policyowner to skip premium payments, provided there's enough cash value in the policy to cover the premium amount?

Universal Life