L/H UNIT 4 CHECKPOINT
C) limited payment whole life policies
Charles and Suzanna both agree to pay premiums on their policies for the next 20 years. After that, they will no longer have to pay premiums, but their insurance coverage will continue until they die. Charles and Suzanna have A) continuous premium whole life policies B) single premium whole life policies C) limited payment whole life policies D) ordinary life policies
C) Option B
Sarah purchases a universal life policy with an increasing death benefit equal to the face value of the policy plus the cash account. Which of the following death benefit options did Sarah choose? A) Option A B) Option C C) Option B D) Option 1
B) fixed and level
The death benefit of a whole life policy is A) decreasing B) fixed and level C) flexible D) adjustable
D) renewability
Which of the following features of term insurance allows the policy to be rented at the end of a specified period without evidence of insurability? A) return of premium B) increasing premium C) decreasing premium D) renewability
A) universal life
Which of the following insurance policies allow for partial surrenders from the cash value? A) universal life B) single premium whole life C) whole life D) convertible term
D) whole life insurance
Which of the following is designed to remain in force for the entire life of the insured? A) increasing term insurance B) term insurance C) convertible term insurance D) whole life insurance
D) survivorship life policy
Which of the following specialized policies pays the death benefit when the last insured dies? A) first-to-die policy B) joint life policy C) juvenile policy D) survivorship life policy
A) premiums are lower than other types of life insurance policies
All of the following are advantages of whole life insurance EXCEPT A) premiums are lower than other types of life insurance policies B) whole life insurance is permanent coverage C) whole life insurance has guaranteed level premiums and does not expire D) cash values accumulate tax deferred
A) the interest-sensitive policy has an adjustable death benefit
All of the following statements about interest-sensitive whole life are correct EXCEPT A) the interest-sensitive policy has an adjustable death benefit B) the interest-sensitive policy has a fixed, level death benefit C) the interest-sensitive policy is also known as current assumption whole life D) the interest-sensitive policy has a fixed premium schedule
B) the conversion must be made after the policy expires
All of the following statements about the convertibility feature in a term policy are correct EXCEPT A) the conversion can occur without having to submit an application B) the conversion must be made after the policy expires C) the conversion must be made before the policy expires D) the conversion can occur without evidence of insurability
D) living benefits
Benefits that are available when the insured is still alive are known in the insurance world as A) savings accounts B) investments C) retirement accounts D) living benefits
D) variable policies have a guaranteed rate of return
Which of the following statements about variable policies is NOT true? A) variable policies have potential to keep pace with inflation because of the tax-deferred feature B) variable policies allow the policy owner to participate in various types of options while not being taxed on earnings until the policy is surrendered C) variable policies have potential of higher returns than the guaranteed rates paid on traditional life insurance products D) variable policies have a guaranteed rate of return
A) decreasing term
Which of the following term policies has a level premium throughout the policy and a decreasing death benefit? A) decreasing term B) return of premium term C) level term D) increasing term
C) variable life insurance
Which of the following types of life insurance requires a producer to have an insurance license and a securities license? A) flexible life insurance B) whole life insurance C) variable life insurance D) universal life insurance