Life Insurance Questions

What's the difference between Joint Life and Survivorship?

For joint life, they pay when the first person dies. For survivorship, they pay when the last person dies.

If a policy offers pure death protection, what does this mean? What does this reveal about the cash value of the policy?

If a policy offers a pure death protection, it means that they do not have a cash value.

As time progesss, what happens to a premium in a Graded Premium Whole life Policy?

In a Graded Premium Whole Life, the premium increases each year for the next 5-10 years, and then remains the same afterwards till the person reaches 100 years old or passes away.

How does the Premium for Joint Life compare to premiums on two policies covering the same two individuals for the same death benefit?

It would be less than for the same type and amount of coverage on the same people who are insured in the policy. It's actually based on a joint average age that is between all the peoples age range.

just bought a new car and he anticipates that it will be paid off off 4 years from now. he also wants to buy a life insurance policy, but is financialy limited until the car is paid off. which of the following types of policies would be best for the person?

MODIFIED LIFE it charges a lower premium the first first years, and then a higher premium for the remainder of the life. it's well known for people who are just starting off, but know they can affford the higher premium in the future.

How does continuous premium straight life differ from the 20-year limited pay life?

Straight life: the premium is covered throughout the insured's lifetime, allowing insurance companies to be able to give such a life amount premium. 20-year limited pay life: there is a higher premium that's required.

if someone can only budget 15 dollars a month for life insurance, which of thw following policies would provide the largest face amount for that amount of premium?

TERM INSURANCE because a term policy is not accumulating cash value, the cost is lower than those policies that do.

Who is the insured under the Juveniles Life policy?

This is insurance for minors.

Survivorship Life

also known as "last survivor" "second to die"

in increasing and decreasing term policies, which policy component fluctuates during the policy term?

death benefits 3 term policy types: level, increase and decrease. regardless of the type of term, the premium is often level throughout the term, and the death benefit is the one that changes.

annually renewable term policies provide a level death benefit for a premium that

increases annually.

which of the following best describes annually renewable term insurance?

it is level term insurance. annually renewable term is a form of level term insurance that offers the most insurance at the lowest cost.

which of the following would be considered an advantage of owning term insurance?

it provides the highest amount of coverage for a temporary period of time. it has no cash value and provides no death benefit if the insured dies after the policy is expired.. but it does have the highest amount of protection for a period of time.

an insured has a life insurance policy that requires him to only pay premiums for a specific number of years until the policy is paid up. what kind of policy is this?

limited pay life. the premiums for coverage will be completely paid-up well before age 100.

Which of the following is an example of a limited pay life policy?

limited pay whole life premiums are all paid by the time the insured reaches 65. the policy endows when the insured turns 100. it is the premium paying period that is limited, not the maturity.

in term policies, what happens to the premium throughout the term of the policy?

premium always remains level.

which of the following types of insurance policies would provide the greatest amount of protection for a temporary period during which an insured will have limited financial resources?

term! term insurance provides a death benefit only; cost per $1,000 is less than other types of policies that create cash value.

Which authorities regulate Variable Life Policies?

they are ususally regulated by the state and federal government. (SEC) and (FINRA)

when would a 20-pay whole life policy endow?

when the insured reaches 100 years old.

Many policies are both renewable and convertible. What are the similarities between these two provisions?

1) The persons age will determine the policy for both convertible and renewable. 2) You don't need evidence of insurability when renewing.

what is true regarding a 100,000$ 20-year level term policy?

1) the policy premiums will remain level for 20 years 2) if the insured dies before the policy expires, the beneficiary will receive 100,000 3) the policy will expire at the end of the 20-year period.

How many lives can be used in the Joint Life?

2 or more

Does the death benefit of an Adjustable Life policy automatically increase with inflation?

Adjustments to the death benefit can be made by the policy owner, and not automatically, and would usually require evidence of insurance.

With annually renewable term insurace, what happens to the premium as a person's age increases?

As the persons age increases, so does the cost of the premium.

a policy will pay the death benefit if the insured dies during the 20 years premium paying period, and no death occurs after the whole 20 years. what type of policy is this?

LEVEL TERM a 20 year term policy is written to provide a level death benefit for 20 years

What are the death benefit options in Universal Life policies?

level death benefit option. also, increasing death benefit options.