Life Insurance Policies

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policy states will pay a specified face amount if the insured dies with 20 year period but nothing if death occurs after 20 year. what type of policy?

20 year level term

what type of premium is charge on a straight life policy

a level premium for the life of the insured

who is insured under a juvenile life policy

a minor

policy owner of a whole life insurance policy is also the insured. what age must the insured attain in order to receive the policy face amount?

age 100

whole life policies provide protection until the insured reaches what age

age 100

death protection component of a universal life policy is expressed as what type of coverage

annually renewable term

group life insurance policies are written as what type of insurance

annually renewable term

in variable universal life insurance, to what policy component does the term variable refer

cash value and death benefit

what happens to cash value when a whole life insurance policy matures

cash value is paid to the policy owner

under option B in a universal life policy, what happens to the death benefit

death benefit increases each year by the amount of the cash value increases

borrowed 10,000 on a 5 year note from bank. note is due in installments. what type of life insurance?

decreasing term

type of life insurance best suited to cover mortage

decreasing term

if an employee wants to join group life insurance coverage outside of the open enrollment period, what would the employee have to provide

evidence of insurability

when the amount of insurance is increased in an adjustable life policy, what will the insurer require from the insured

evidence of insurability

a whole policy that requires that the policyowner only pays premiums for a specified number of years is known as what kind of policy

limited- pay whole life

type of whole life insurnace policy only requires a payment of premium at its inception and is insured til age 100

single premium whole life

what type of whole life insurance policy generates immediate cash value

single premium whole life

regarding taxation, how does the cash value of a universal life policy accumulate

tax deferred

what type of life insurance policy provides permanent protection

whole life

what is the main advantage of converting from group life insurance to individual coverage?

evidence of insurability is not required

what policy component must decrease in decreasing term insurance

face amount

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 for what time period?

for 20 years or until the insured death, which ever occurs first

whole life insurance policies mature when the insured reaches age of 100. owner of a whole life policy dies at age 80, and there are no outstanding loans on the policy, what portion of the death benefit will be paid to the beneficiary

full death benefit

what type of life insurance policy is life paid up at age 65

limited pay whole life

what are the living benefits of whole life insurance

loan values

what happens to the premium in an annually renewable term life policy

premium increases with each renewal

difference between straight life, limited payment and single premium whole life policies

premium payment mode

what type of life insurance policy offer pure death protection

term

what elements of an adjustable life policy can be changed by the policy owners

the amount and payment period of the premium, the face amount, and the period for protection

who owns a group life insurance contract?

the employer or sponser

who is entitled to the cash value in a life insurance policy

the policy owner

cash value of policy is lower this month than last. what type of policy is this

variable

when would a 20- pay whole life policy endow

when the insured reaches age 100

when does an adjustable life policy accumulate cash value

when the premiums paid are most than the cost of the policy

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

to prevent policy from lapsing

what does level refer to in level term insurance

face amount

what type of life insurance policies can the policy owner skip premium payment without the policy lapsing

universal life

if an insured terminates membership group life insurance, to what type of insurance can the insured convert the coverage

whole life

what type of policy issues certificates of insurance to the insured

group policy

universal life policies have two types of interest rates

guaranteed and current

how is the premium determined in a joint life insurance policy

the premium is based on the average age of the insured

why are policy loans not available on term insurance

there is no cash value to borrow against

what universal life option has a gradually increasing cash value and a level death benefit

option A

what are the death benefit options in universal life policies

option A - level death benefit Option B- increasing death benefit

what type of policy is typically issued without proof of insurability from the insured

group policy

what are the characteristics of the group that underwriters will consider before issuing a group life policy

group's purpose, size, financial strength and turnover

in term policies, what happens to the premium through the term of the policy

premium remains level


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