Types of life policies
The LEAST expensive first-year premium is found in which of the following policies?
annually renewable term
The death protection component of Universal Life Insurance is always
annually renewable term
in annuity, the accumulated money is converted into a stream of income during which time period?
annuitization period
What is another name for interest-sensitive whole life insurance?
current assumption life
An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?
decreasing term
An insured purchased a Life Insurance policy. The agent told him that depending upon the company's investments and expense factors, the cash values could change from those shown in the policy at issue time. The policy is a/an
interest sensitive whole life
which of the following is true regarding the accumulation period of an annuity
it is a period during which the payments into the annuity grow tax deferred
which statement is NOT true regarding a straight life policy
its premiums steadily decreases over time, in response to its growing cash value
The premium of a survivorship life policy compared with that of a joint life policy would be
lower
Which Universal Life option has a gradually increasing cash value and a level death benefit?
option A
Which two terms are associated directly with the way an annuity is funded?
single payment or periodic payments
All of the following entities regulate variable life policies EXCEPT
the guaranty association
All of the following are true of an annuity owner EXCEPT
the owner must be the party to receive benefits
Which of the following determines the cash value of a variable life policy?
the performance of the policy portfolio
which of the following best defines target premium in a universal life policy
the recommended amount to keep the policy in force throughout its lifetime