life insurance
which of the following is an example of a Limited-Pay Life policy
20-Pay Life
At age 30, Tom Morris wishes to purchase a Whole Life policy. His producer explains that he can pay for the policy in several ways. One method is called 20-Pay Life, and another, Straight Life. Tom wishes to know which plan will accumulate cash value at a faster rate in the early years of the policy. Which of the following would be the producer's most appropriate response?
20-Pay Life will accumulat cash value faster
Sandra Timms, age 27, is advised by her producer to purchase Life insurance to cover a 20-year-amortized $50,000 business-improvement loan. Which of the following plans would adequately protect Ms. Timms at the minimum premium outlay?
A $50,000 Decreasing Term policy for 20 years
You have a client that is a real estate agent. Which of the following types of permanent protection is best for this type of client?
Adjustable life
Which of the following contracts requires that a series of benefit payments be made at specified intervals?
Annuity
An Annuity is designed to provide which of the following financial features? I. The liquidation of principal and interest II. Favorable tax treatment III. The creation of an estate
I. The liquidation of principal and interest II. Favorable tax treatment
A 45-year old customer who is seeking to supplement his retirement income at age 65 would not buy a:
Immediate Annuity
Most Term Life Insurance
Is convertible to permanent whole life without a physical exam
Which of the following statements about a Renewable Term policy is true?
It is renewable at the option of the insured
Which of the following is an example of a Limited-Pay Life policy?
Life Paid-Up at Age 65
Which of the following statements is true about the premium payment schedule for a whole life policy
Premiums are payable throughout the insured's lifetime, and coverage continues until the insured's death
A life insurance policy that covers two parties, but only pays when the last party dies is known as:
Survivor ship Life
Which of the following types of insurance policies would provide the greatest amount of protection for a temporary period during which an insured will have limited financial resources?
Term
If a person wants to invest a lump sum in an annuity that may appreciate along with market and economic conditions, they should buy a
Variable Annuity
A life insurance policy whose cash value will fluctuate depending upon the performance of a separate account is
Variable Life
Which of the following policies provides the greatest amount of protection for an insured's premium dollar as well as some cash accumulation
Whole Life
Which of the following individual policy conversions is usually permitted without any evidence of insurability?
conversion from a term policy to a whole life policy
A life insurance policy that combines term insurance protection, a flexible premium, and cash value accumulation is:
universal Life
