Insurance Chapter 12
An increasing Term Life policy has a feature that increases. From the following select its increasing factor?
Death benefit
What feature will increase in an increasing term insurance policy?
Death benefit
Which of the following type of insurance covers a whole family in a single contract?
Family plan
How is Group Life insurance offered?
It is frequently offered as a percentage of a employee's earnings
What is the correct comparison between Survivorship Life and a traditional Joint Policy?
Joint Life pays a death benefit on the first death, while a survivorship Life pays on the last death
Which bests describes a limited pay life policy?
Life paid up at age 65
Ricky wants a policy that will be paid in full in 20 years. Which of the following describes this policy?
Limited pay
What is one of the bests features of convertible and renewable term policies?
Proof of insurability is not required for both policies
Andrew wants to increase the face amount in his adjustable life policy. All of the following will not apply to his situation in order to get the face amount adjustments EXCEPT:
Provide proof of insurability
All of the following policy characteristics in an adjustable life policy may be changed to meet the policyholder's needs EXCEPT:
Set the interest rate
Which of the following is not associated with a universal life policy?
The targeted premium pays for expenses and any excess is returned to the policy owner?
Credit life insurance is written:
To insurer a debtor
Jake just bought a new van for his moving company that he hopes to pay off in three years. He also wants to buy insurance, but is financially strapped with other bills to pay. What kind of policy would be best for Jake?
Modified Life
Which of the following is true regarding a Joint Life policy?
A joint life premium is based on the average age of the insureds and pays the death benefit on the first to die.
In term Insurance, cash value is:
Not part of the policy
How is group life insurance offered?
It is frequently offered as a percentage of a employee's earnings
What is the purpose of credit life insurance?
It protects lenders from financial losses due to a borrower's death
Your client wants both protection and savings from insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?
Limited pay whole life
What does an indeterminate premium policy offer?
Low initial premiums with additional premiums based on the company's investment return, mortality and expenses
A life Insurance policy owner skips her premium payment, but her policy does not lapse. her premium is deducted from the cash value of her policy. What type of policy does this scenario describe?
Universal Life
Which of the following best depicts the cash value in a universal life policy?
The insurer of the policy credits the cash value with the current interest rate
