Types of Policies

The insured is also the policyowner of a whole life policy. What age must the insured attain in order to receive the policy's face amount? A. 62 B. 70 1/2 C. 95 D. 100

100

Whose life expectancy is taken consideration in an annuity? A. Owner B. Annuitant C. Beneficiary D. Life expectancy is not a factor in annuities

Annuitant

When the insured purchased a new home, he wanted to purchase a life insurance policy that would protect his family against losing it should he die before the mortgage was paid. Which of the following policies is best suitable for that need? A. Whole life B. Level term C. Decreasing term D. Return of premium

Decreasing Term

An individual inherited a large sum of money at age 40 and wanted to use it to provide a guaranteed income after his retirement at age 60. Which of the following types of annuities would best meet this need? A. Immediate B. Flexible premium C. Deferred D. Variable

Deferred

Which of the following would be considered a disadvantage of term insurance? A. if the insured dies during the term, the policy pays only the accumulated cash value B. If the insured dies after the end of the term, there is not death benefit to the beneficiary C. The policy provides the smallest amount of coverage for the highest premium D. It cannot be renewed or converted to a permanent policy

If the insured dies during the term, the policy pays only the accumulated cash value

An individual owns an adjustable life policy. Sometime in the future he wants to increase the death benefit. Which of the following statements is correct regarding the death benefit increase? A. The death benefit cannot be increased B. It can only be increased when the policy has developed cash value C. It can only be increased by exchanging the existing policy for whole life D. It can be increased by providing evidence of insurability

It can be increased by providing evidence of insurability

Which of the following is an example of limited-pay life policy? A. Straight life B. Life paid-up at age 65 C. Renewable term to age 70 D. Endowment maturing age 65

Life paid-up at age 65

Which of the following is true regarding a joint life policy? A. It pays a death benefit after the last insured's death B. Premium is based on the average age of the insureds C. It is a form of group life insurance D. It is used to offset the liability of the estate tax upon the insured's death

Premium is based on the average age of the insureds

With a traditional whole life policy, the death benefit A. Remains constant over time B. Increases over time C. Decreases over time D. Becomes pure death protection after 20 years

Remains constant over time

An annually renewable term policy A. increases in premium based on the insured's health B. Maintains a level premium each year C. Renews each year with an increase premium D. Increases in coverage each year

Renews each year with an increase premium

Which type of life insurance policy generates immediate cash value? A. Single premium B. Level term C. Variable D. Decreasing term

Single premium

The time during which an annuitant contributes to an annuity is called? A. The annuity period B. The accumulation period C. The deferred growth D. The savings period

The accumulation period

Which of the following statements is true regarding a universal life policy? A. The insurer sets the cash value and premium payment period B. The death benefit can be increased without evidence of insurability C. The premiums can be decreased by the insured D. It is issued without a guaranteed interest rate

The premiums can be decreased by the insured

An insured receives a monthly summary regarding his life insurance policy. He notices that the cash value of the policy is significantly lower this month than it was last month. What type of policy does he have? A. Adjustable B. Variable C. Term D. Whole life

Variable

The renewable provision allows the policyowner to renew the coverage at the expiration date A. Without evidence of insurability B. Only with evidence of insurability C. With evidence of insurability if the insured requires it D. With evidence of insurability if the insured risk ahs increased

Without evidence of insurability