Chapter 12:

Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client? A. Decreasing term B. Limited Pay Whole Life C. Increasing term D. Modified Life

B. Limited Pay Whole Life

What is one of the best features of Convertible and Renewable Term policies? A. They both offer cash value B. Proof of insurability is not required for both policies C. They both can be converted to cash value policies C. They both accumulate interest

B. Proof of insurability is not required for both policies

Which of the following is a feature of Whole Life insurance policy? A. It has cash value that may be borrowed against B. It has flexible premiums C. It has an adjustable death benefit D. It has a revocable beneficiary attachment

A. It has cash value that may be borrowed against

Lynn bought a policy in which her premium stays fixed for the first five years. Afterwards her premium will increase in the 6th year and remain level and her death benefit remains the same too. What kind of policy does this describe? A. Modified Whole Life B. Term C. Variable D. Graded Adjustable

A. Modified Whole Life

How is the value of variable life insurance based? A. Underlying investments B. Paid in premiums C. Price indexed D. Marketing indexes

A. Underlying investments