Test 2

Periodic payments of accumulated funds best describes

An annuity.

The equity in an equity index annuity is linked to

An index like Standard&Poor's 500.

Which of the following is NOT true regarding the accumulation period of an annuity?

It would not occur in a deffed annuit

An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?

Limited-pay Life

Question insurance matures Single Modified Endowment life. premium

Single premium whole life.

All of the following statements about equity index annuities are correct EXCEPT

The annuitant receives a fixed amount of return.

All of the following are true regarding a decreasing term policy EXCEPT

The payable premium amount steadily declines throughout the duration of the contract.

In a survivorship life policy, when does the insurer pay the death benefit?

Upon the last death

The death protection component of Universal Life Insurance always

Annually Renewable Term

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 20 years or until death, whichevex occurs first.

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

Increases annually

Which statement is NOT true regarding a Straight Life policy?

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

Which two terms are associated directly with the way an annuity is funded?

Single payment or periodic payments

The death benefit in a variable universal life policy

Depends on the performance of a separate account.

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 20 or until death, whichever occurs first.

Which of the following best describes annually renewable term insurance?

It is level term insurance.

Which of the following is another term for the accumulation period of an annuity?

Pay-in period

Equity indexed annuities

Seek higher returns.

The main difference between immediate and deferred annuities is

When the income payments begin.

Which of the following products requires a securities license?

Variable annuity

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

Universal Life

The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?

The death benefit can be increased by providing evidence of insurability

Which of the following is NOT true regarding Equity Indexed Annuities?

They earn lower interest rates than fixed annuities

Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?

Option B