Life insurance policies
An individual has just borrowed $10,000 from his bank on a 5 year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?
Decreasing
Which of the following best defines target premium in a universal life policy?
The recommended amount to keep the policy in force throughout its lifetime.
When would a 20-pay whole life policy endow?
When the insured reaches age 100
Which policy component decreases in decreasing term insurance?
Face amount
An insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured, and matures at the insureds age 100 is called
Single premium whole life
All of the following could own group life insurance except
A group needing low cost life insurance
Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid
For 20 years or until death, whichever occurs first.
Concerning juvenile Life insurance, which of the following statements is incorrect?
Juvenile Life is classified as any life insurance purchased by a minor.
Which of the following is called a "second to die" policy?
Survivorship life
Which of the following is NOT true regarding a Variable Universal Life Policy?
The death benefit is fixed
An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?
The insurer will pay the full death benefit from the group policy to the beneficiary.
The policy owner of a Universal life policy may skip paying the premium and the policy will not lapse as long as
The policy contains sufficient cash value to cover the cost of insurance.
All of the following are true regarding the convertibility option under a term life insurance policy except
Upon conversion, the death benefit of the permanent policy will be reduced by 50%
Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be
Adjusted to the insureds age at the time of renewal
Which of the following types of insurance policies is most commonly used in credit life insurance?
Decreasing term
The death protection component of Universal Life Insurance is always
Annual renewable term
All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy?
Lower
An employee has group life insurance through her employer. After 5 years, she decides to leave the company and work independently. How can she obtain an individual policy?
She can convert her group policy to an individual policy without proof of insurability within 32 days of leaving the group plan
Which of the following are generally NOT considered when underwriting group insurance?
The insureds medical history
The death benefit in a variable universal life policy
Depends on the performance of a desperate amount.
Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?
Limited pay whole life
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
Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?
Those who have been insured under the plan for at least 5 years