Know This
In a decreasing term policy the death benefit is at what ?
0$
In a decreasing term policy the contract only pays in the event of what?
A death , with no cash value
A variable universal life insurance policy combines
A flexible premium with a investment component
Universal Life policies allow for policyholders to withdraw what?
A limited portion of the policy's cash value with a fee
A Universal Life Insurance policy is best described as what ?
An annually renewable term policy with a cash value account.
What feature of the indexed whole life policy is not fixed?
Cash Value growth
Which policy offers a higher premium with faster growth of cash value?
Endowment Policy
What type of premium do both Universal Life and Variable Universal Life policies have?
Flexible
A universal life insurance policy has two types of interest rates that are called
Guaranteed and Current
A return of premium term life policy is written as what type of term coverage?
Increasing
Depending upon the companys investments and expense factors , the cash value could change this is a quality of what
Interest-sensitive Whole Life
Whole variable life insurance is based on what type of premium?
Level Fixed
Financially Limited =
Modified Life
Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?
Option B
What would a policyowner of a adjustable life policy need to increase death benefit ?
Proof of insurability
SEC Registration is for what ?
Securities
In variable contracts what does the policyowner bear
The investment risk or assets in a separate account
If an insured skips a premium payment on a universal life policy
The missing premium may be deducted from the policy's cash value. The policy will NOT lapse.
If a level term product is renewed at the end of the term period what happens?
The premium will be based upon the attained age.
In an Adjustable life policy what cant be changed
The type of investment
Which of the following life insurance policies would be considered interest sensitive ?
Universal Life
An universal life insurance policy is best described as a
Whole life policy with two premiums : target and minimum
Variable Whole Life Insurance guarantees
a minimum death benefit
The death protection component of universal life insurance is always
annually renewable term
Premium rates on a joint life policy are determined by
averaging the ages of both insureds
The performance of the policy portfolio
determines the cash value of a variable life policy
Joint Life =
first to die
Universal policies have no
fixed premium
What is the death benefit under the Universal life option B
it gradually increases each year by the amount that the cash value increases.
Straight life policies charge a ?
level annual premium throughout the insureds lifetime
whole life insurance provides
lifetime (permanent) protection and accumulates cash value
The premium of a survivorship life policy compared with that of a joint life policy would be ?
lower
Term Insurance has
no cash value
Decreasing term policies feature a level premium and the face amount decrease. But a death benefit that decreases....
over duration of the policy term
In a adjustable life policy you need what to increase the death benefit
proof of insurability
Annually Renewable Terms
require a premium increase each renewal
Survivorship life =
second to die ( last survivor)
What policy has the lowest annual premium of the three types of whole life policies ?
straight life policy
Level in term insurance refers to
the death benefit , which does NOT change.
Term Insurance provides
the greatest amount of coverage for the lowest premium