Types of Life Policies
The least expensive first year premium is found in which of the following policies ?
Annually renewable term
Annually renewable term policies provide a level death benefit for a premium that?
Increases annually
An insured purchased a Life Insurance policy. The agent told him that depending upon the company's investments & expense factors, the cash values could change from those shown in the policy at issue time. The policy is an:
Interest-sensitive whole life policy.
A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured. Which policy is that?
Joint Life Policy
Which Universal Life option has a gradually increasing cash value and a level death benefit?
Option A
What form of the annuity settlement options provides payments to an annuitant for the rest of the annuitant's life and ceases at the annuitant's death?
Pure life
Which of the following is NOT a type of whole life insurance?
Straight Life, Limited Payment, and Single Premium, are the basic forms of whole 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
Whole life insurance policies mature when the insured reached the age of 100. If the owner of a whole life policy (the insured) dies at 80,and there are no outstanding loans on the policy, what portion of the death benefit will be paid to the beneficiary?
The full death benefit
All of the following are true regarding the convertibility option under a term life insurance policy EXCEPT
Upon, conversion, the death benefit of the permanent policy will be reduced by 50%
Which of the following life insurance policies allows a policyowner to take out a loan from the policy's cash value?
Variable universal life
what characteristic makes whole life permanent protection?
coverage until death or until age 100
which of the following is not true regarding the accumulation period of an annuity?
it would not occur in a deferred annuity
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
Which of the following types of annuities will generally provide the highest monthly income?
straight life
Which of the following products requires a securities license?
variable annuity