chap 3

which of the following is incorrect regarding $100,000 20 year level term policy

At the end of 20 years, the policy's cash value will equal $100,000.

Variable life insurance is based on what kind of premium?

Level fixed

And employee quits his job on May 15 and doesn't convert his group life policy to an eventual policy for two weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?

The insurer will pay the full death benefit from the group policy to the beneficiary

Which type of life insurance policy generate immediate cash value?

Single premium

Term policies are available as level, increasing, and decreasing. Which policy component fluctuates depending on the policy type?

death benefit

which option for universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?

Option B

all of the following are types of term insurance depending on how the face amount changes during the policy except

Renewable

The death protection component of universal life insurance is always

annually renewable term

Both Universal Life and Variable Universal Life have a

flexible premium

A return of premium life policy is written as what type of term coverage

increasing

The type of insurance sold to a debtor and design to pay the amount due on the loan if the debtor dies before the loan is repaid is called

Credit life

The initial amount of credit life insurance may not exceed

-- The amount to be repaid under the contract

Which of the following types of insurance policies is most commonly used in credit life insurance?

Decreasing term

Death benefit under the universal life option B

Gradually increases each year by the amount that the cash value increases

What are the two components of a universal policy?

Insurance and cash account

if a life insurance policy increases significantly in Face amount (death benefit) when the insured reaches a specified age, what type of policy is this?

Jumping juvenile policy

All other factors being equal the least expensive first year premium payment is found in

annually renewable term

In a group life insurance policy the employer may select all of the following except

beneficiary

An individual has just borrow $10,000 from his bank on a five-year installment loan requiring monthly payments. What type of life insurance policy would be best suited in this situation?

decreasing term

An applicant wants to buy a life insurance policy in which she can count on receiving the same benefits as stated in the contract. Which type should he buy?

fixed

All of the following statements are correct regarding credit life insurance except

Benefits are paid to the borrower's beneficiary.

A policy will pay the death benefit if the insured dies during the 20 year premium paying., And nothing if death occurs after the 20 year period. What type of policy is this?

level term