eHealth EXAM
All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT A Upon conversion, the death benefit of the permanent policy will be reduced by 50%. B Evidence of insurability is not required. C Most term policies contain a convertibility option D Upon conversion, the premium for the permanent policy will be based upon attained age.
A
The premium of a survivorship life policy compared with that of a joint life policy would be A Half the amount B Lower C Higher D As high
B
Which of the following products provides income for a specified period of years or for life, and protects a person against outliving his or her money? A A group policy B An annuity C A survivorship life policy D A universal life policy
B
Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured? A Option A B Option B C Corridor option D Variable option
B
All of the following are true regarding a decreasing term policy EXCEPT A The contract pays only in the event of death during the term and there is no cash value. B The face amount steadily declines throughout the duration of the contract. C The payable premium amount steadily declines throughout the duration of the contract. D The death benefit is $0 at the end of the policy term.
C
An annuity owner is funding an annuity that will supplement her retirement. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 Index. She would likely purchase a(n) A Flexible Annuity. B Immediate Annuity. C Equity Indexed Annuity. D Variable Annuity.
C
In a survivorship life policy, when does the insurer pay the death benefit? A Half at the first death, and half at the second death B If the insured survives to age 100 C Upon the last death D Upon the first death
C
Why is an equity indexed annuity considered to be a fixed annuity? A It has a fixed rate of return. B It is not tied to an index like the S&P 500. C It has a guaranteed minimum interest rate. D It has modest investment potential.
C
An insured purchased a 20-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term? A The insured must provide evidence of insurability to renew the policy. B The insured may only convert the policy to another term policy. C The insured may renew the policy for another 10 years at the same premium rate. D The insured may renew the policy for another 10 years, but at a higher premium rate.
D
If an agent wishes to sell variable life policies, what license must the agent obtain? A Adjuster B Surplus Lines C Personal Lines D Securities
D
Fixed annuities provide all of the following EXCEPT A Hedge against inflation. B Equal monthly payments for life. C Minimum guaranteed rate of interest. D Future income payments.
A
An insured purchased a Life Insurance policy. The agent told him that depending upon the company's investments and expense factors, the cash values could change from those shown in the policy at issue time. The policy is a/a(n) A Credit Life B Annual Renewable Term. C Adjustable Life D Interest-sensitive Whole Life
D
In an annuity, the accumulated money is converted into a stream of income during which time period? A Payment period B Amortization period C Conversion period D Annuitization period
D
The main difference between immediate and deferred annuities is A How the annuity is purchased. B The number of insureds. C The amount of each payment. D When the income payments begin.
D
Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid A Until the policyowner reaches age 65. B For at least 20 years C Until the policyowner's age 100, when the policy matures. D For 20 years or until death, whichever occurs first.
D