Life Section 1
Which of the following is an example of a limited pay life policy?
20-pay life
Sandra Timms, age 27, is advised by her producer to purchase life insurance to cover a 20-year- amortized $50,000 business-improvement loan. Which of the following plans would adequately protect Ms. Timms at the minimum premium outlay?
A 50,000 decreasing term policy for 20 years
A business owner with a fluctuating income who wants a life insurance policy that can changed to suit economic conditions should buy:
Adjustable Life
You have a client that is a real estate agent. Which of the following types of permanent protection is best for this type of client?
Adjustable Life
Which of the following contracts requires that a series of benefit payments be made at specified Intervals'?
Annuity
An annuity is designed to provide which of the following financial features? I. The liquidation of principal and interest II. Favorable tax treatment III. The creation of an estate
Both I and II
Which of the following individual policy conversions is usually permitted without any evidence of insurability?
Conversion from a term policy to a whole life policy
Most term life insurance are?
Convertible to permanent whole life without an exam
An insurance producer selling a variable annuity whose cash value depends on the performance of an underlying investment account must be registered with:
FINRA Financial Industry Regulatory Authority
A 45-year old customer who is seeking to supplement his retirement income at age 65 would not buy a:
Immediate Annuity
Which of the following statements about a renewable term policy is true?
Its is renewable at the option of the insured
Which of the following is an example of a limited pay life policy?
Life paid-up at age 65
Which of the following statements is true about the premium payment schedule for a whole life policy?
Premiums are payable throughout the insured's lifetime and continue until death
A life insurance policy that covers two parties, but only pays when the last party dies is known as:
Survivorship life
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
In order to sell variable life insurance you must be registered with which of the following?
The NASD
Which of the following is NOT correct regarding ordinary whole life policies?
The cash value grows more quickly in the beginning
A life insurance policy that combines term insurance protection, a flexible premium, and cash value accumulation is:
Universal Life
If a person wants to invest a lump sum in an annuity that may appreciate along with market and economic conditions, they should buy a:
Variable Annuity
If a client wants cash value life insurance with a flexible premium and an adjustable death benefit that will allow the policy owner a choice of various cash value investment options, he should buy:
Variable/universal life
Which of the following policies provides the greatest amount of protection for an insured's premium dollar as well as some cash accumulation?
Whole Life
John Livingston owns a 30 pay life policy that he purchased at the age of 30. The cash value will equal the face amount of the policy when he reaches the age of ?
age 100
