chapter 2
whose life expectancy is taken into consideration in an annuity?
annuitant
which of the following is an example of a limited pay life policy
life paid up at age 65
what allows the variable annuity income to fluctuate?
changes in investment performance
the primary purpose of an annuity is to
provide income for life
an annually renewable Term Policy
renews each year with an increased premium
which type of life insurance policy generates immediate cash value?
single premium
which policy is paid up early and endows at age 100?
20 pay life
in a variable annuity, who regulates separate account?
SEC
when the insured purchase 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 suited for that need?
decreasing term
which of the following would be considered a disadvantage of term insurance?
if the insured dies after the end of the term, there is no death benefit to the beneficiary.
the time period during which an annuitant contributes to an annuity is called
the accumulation period
which of the following statements is true regarding a universal life policy?
the premiums can be decreased by the insured
adjustable Life policies are constructed using which of the following as their base policy?
whole life
what type of policy has premiums paid at 100, and upon age 100 pays the face amount as an endowment?
straight whole life
an insured has a policy in which the cash values increased to a point where the corridor was utilized. What type of policy does the insured have?
universal life Option 1
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?
variable
which of the following annuity products requires an agent to hold Securities license?
variable annuities