Chapter Quiz #2 Types of Life Policies
Which of the following products provides income for a specified period of years or for life, and protects against outliving their money?
An Annuity
Concerning a Whole Life Policy, which of the following statements is correct?
Cash value is guaranteed
What characteristics makes whole life permanent protection?
Coverage until death or age 100
The term "fixed" in a fixed annuity refers to all of the following EXCEPT
Death benefit
Which policy component decreases in decreasing term insurance?
Face Amount
Which of the following best describes annually renewable term insurance
It is level term insurance
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
Your client wants both protection and savings from the insurance and is willing to pay premiums until retirement at age 65
Limited Pay Whole Life
Under a pure life annuity, an income is payable by the company
Only for the life of the annuitant
Which of the following is NOT one of the three types of term coverage based on what happens to the face amount during the policy term?
Renewable
An insured borrowed a loan from the cash value of his whole life policy. if the insured dies without repaying the loan, what amount will the beneficiary recieve.
The death benefit minus the amount of the loan and interest
An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?
Universal Life
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 is a key distinction between variable whole life and variable life products?
Variable whole life has a guaranteed death benefit
When would a 20-pay whole life policy endow?
When the insured reaches age 100