L3 - Types of Insurance Policies

What type of life insurance gives the greatest amount of coverage for a limited period of time?

Term Insurance

Variable Whole Life Insurance can be described as

both an insurance and securities product.

What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time?

Decreasing term

A variable insurance policy

does not guarantee a return on investment accounts. In contrast, variable insurance products do not guarantee contract cash values, and it is the policyowner who assumes the investment risk. Variable life insurance contracts do not make any promises as to either interest rates or minimum cash values.

What kind of premium does a Whole Life policy have?

level

A 15-year mortgage is best protected by what kind of life policy?

15-year decreasing term

What kind of special need would a policyowner require with an Adjustable Life insurance policy?

As financial needs and objectives change, the policyowner can make adjustments to the premium and/or face amount.

S is covered by a whole life policy. Which insurance product can cover his children?

The means of providing life insurance on the children of a person who is covered by a life insurance policy is by a child term rider.

Term insurance has which of the following characteristics?

With term insurance, the policy expires at the end of the policy period.

What does a Face Amount Plus Cash Value Policy supposed to pay at the insured's death?

A Face Amount Plus Cash Value Policy is a contract that promises to pay at the insured's death the face amount of the policy plus a sum equal to the policy's cash value.

Which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options?

A life insurance policy that has a level premium but allows the policyowner to choose from a selection of investment options is known as Variable Life.

Which of the following features of a group Term Life policy enables an individual to leave the group and continue his or her insurance without providing evidence of insurability?

Conversion Privilege

T would like to be assured $10,000 is available in 10 years to replace a roof on his house. What kind of $10,000 policy should T purchase?

In this situation, a Ten-Year Endowment should be purchased to ensure the funds will be available when needed.

G purchased a Family Income policy at age 40, The policy has a 20-year rider period. If G were to die at age 50, how long would G's family receive an income?

In this situation, the family would receive an income from the policy for 10 years. Family Income policies pay an income beginning at the insured's death and continues for a period specified from the date of policy issue.

Which provision allows the policyowner to change a term life policy to a permanent one without providing proof of good health?

conversion