Life Insurance Policies

Which of the following would be the beneficiary in credit life insurance?

Creditor

All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy?

Lower

Which of the following types of policies allows the policyowner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount?

Universal life

Which of the following is TRUE regarding the premium in term policies?

The premium is level.

Which type of life insurance policy allows the policyowner to pay more or less than the planned premium?

Universal life

A Universal Life Insurance policy is best described as a/an

Annually Renewable Term policy with a cash value account.

Which of the following would help prevent a universal life policy from lapsing?

Target premium

Which of the following is TRUE about credit life insurance?.

Creditor is the policyowner

When an employee terminates coverage under a group insurance policy, coverage continues in force

For 31 days.

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.

The policyowner of a Universal Life policy may skip paying the premium and the policy will not lapse as long as

The policy contains sufficient cash value to cover the cost of insurance.

What characteristic makes whole life permanent protection?

Coverage until death or age 100

Which statement is NOT true regarding a Straight Life policy?

Its premium steadily decreases over time, in response to its growing cash value.

What is the purpose of establishing the target premium for a universal life policy?

To keep the policy in force

Which of the following is NOT allowed in credit life insurance?

Creditor requiring that a debtor buys insurance from a certain insurer

An employee quits his job and converts his group policy to an individual policy; the premium for the individual policy will be based on his

Attained age.

Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?

Those who have been insured under the plan for at least 5 years