Types of Individual Life Insurance

Which component increases in the increasing term insurance?

Death benefit

A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?

Level Term

Who regulates variable life policies?

SEC, federal government, and the insurance department.

Which of the following is called a "second-to-die" policy?

Survivorship life

All of the following are true about variable products EXCEPT

The premiums are invested in the insurer's general account.

Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?

Universal Life - Option A

Which of the following features of the Indexed Whole Life policy is NOT fixed?

Cash value growth

A Return of Premium term life policy is written as what type of term coverage?

Increasing

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

Upon the last death.

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 with proof of insurability.

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

To keep policy in force

Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be

Adjusted to the insured's age at time of renewal.

Your customer doesn't mind paying a higher premium as long as he gets a life insurance product that would allow for a faster growth of the cash value. What kind of policy would you recommend?

An endowment policy

A policy which pays monthly income upon the death of the breadwinner for a predetermined number of years after death, plus a lump sum at death, and combines level term and whole life is known as which policy?

Family maintenance

Which of the following types of insurance covers the whole family in a single contract?

Family policy

A variable policy's death benefit and cash value is based on a distinct pool of investments. These are held in separate accounts that act like

Mutual funds