chapter 3
A Universal Life Insurance policy is est described as a/an
Annually Renewable Term policy with a cash value account
in increasing and decreasing term policies, which policy component fluctuates during the policy term
Death benefit
In which of the following cases will the insured be able to receive the full face amount from a whole life policy
If the insured lives to age 100
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
A group of 15 skydivers met at a seminar and began talking about life insurance during a break. Because it was expensive to get individual life insurance, they decided to band together to form a small group so that they could qualify for group life insurance. After they applied for group life insurance, they were rejected. Why?
The purpose of the group was to purchase life insurance
Which of the following Life Insurance policies would be considered interest sensitive
Universal Life
what characteristic makes whole life permanent protection
coverage until death or age 100
An insured buys a 5-year level premium term policy with a face amount of 10,000. The policy also contains renewability and convertibility options. When the insured renews the policy in 5 years, what will happen to the premium
it will increase because the insured will be 5 years older than when the policy was originally purchased
Which statement is not true regarding a straight life policy
its premium steadily decreases over time, in response to its growing cash value
an employee is joining a group insurance plan. In order to avoid having to prove insurability, what must the employee do?
join during the open enrollment period
Variable Whole Life insurance is based on what type of premium
level fixed
A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period, What type of policy is this?
level term
In ter pllicies, what happens to the premium throughout the term of the policy?
premium always remains level
the follwoing are features of the indexed universal life except
sale of this product requires a securities license
Which of the following tatements about group life is correct
the cost of coverage is based on the ratio of men and women in the group
An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is incorrect
the insured may choose to convert to term or permanent individual coverage
which of the following determines the cash value of a variable life policy
the performance of the policy portfolio