Policy Missed Questions
All of the following are true regarding a decreasing term policy EXCEPT
1 The payable premium amount steadily declines throughout the duration of the contract .
A Straight Life policy has what type of premium?
A level annual premium for the life of the insured
The term " fixed " in a fixed annuity refers to all of the following EXCEPT
Death benefit
An agent selling variable annuities must be registered with
FINRA .
What does "level" refer to in level term insurance?
Face amount
Under which installments option does the annuitant select the amount of each payment, and the insurer determines how long they will pay benefits?
Fixed amount
During partial withdrawal from a universal life policy , which portion will be taxed ?
Interest
Which of the following is NOT true regarding the Life with Guaranteed Minimum annuity settlement option ?
It does not guarantee that the entire principal amount will be paid out .
All of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT
It is a life contingency option.
Which of the following best describes annually renewable term insurance ?
It is level term insurance .
Which statement is NOT true regarding a Straight Life policy?
Its premium steadily decreases over time, in response to its growing cash value.
Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die?
Joint Life
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
Which of the following has the right to convert the existing term coverage to permanent insurance ?
Policyowner
Your client is planning to retire. She has accumulated $100,000 in a retirement annuity, and now wants to select the benefit option that will pay the largest monthly amount for as long as she lives. As her agent, you should recommend
Straight life.
Who bears all of the investment risk in a fixed annuity?
The insurance company
All of the following are true of an annuity owner EXCEPT
The owner must be the party to receive benefits .
Which of the following statements is correct regarding a whole life policy?
The policyowner is entitled to policy loans.
Which of the following is INCORRECT regarding a $100,000 20-year level term policy?
At the end of 20 years, the policy's cash value will equal $100,000.
All of the following statements are true regarding installments for a fixed amount EXCEPT
The payments will stop when the annuitant dies.