Type of insurance policies

A single premium cash value policy can be described as

A policy that is paid up after only one payment

Which of these would be the best example of a limited pay life insurance policy

Whole life policy with premiums paid up after 20 years

Sean Mike and Dave are brothers to have a $100,000 first to die joint life policy covering all three of their lives if Mike dies first, the policy proceeds

Will no longer provide insurance protection

Variable life insurance and universal life insurance are very similar. Which If these features are held exclusively by variable universal life insurance?

Policyowner has the right to select the investment which will provide the greatest return

Which of these describes the result of a modified endowment contract that failed to meet to 7Pay test

Pre death distributions are typically taxable

Under a MEC, What are the likely tax consequences

Pre-death distributions will become taxable

How are survivorship life insurance policies helpful in estate planning?

Provide tax deductions for premium payments

Which of the following are the premium payments for a universal life policy not used for

Separate account investments

Which type of multiple protection policy peas on the death of the last person

Survivorship life policy

Which type of life insurance policy pays the face amount at the end of the specified period if the insured is still alive?

Endowment policy

Peter has a policy where 80% to 90% of the premium is invested in traditional fixed income securities and the remainder of the premium is invested in contracts tied to a stipulated stock index. What kind of policy is this

Equity index whole life

A spouse and a child can be added to the primary insurance coverage as what kind of rider

Family term

Which of these riders I will pay a death benefit if the insured's spouse dies

Family term insurance rider

All of these characteristics of a universal life insurance policy except

Fixed surrender value

Which policy future makes a universal life policy different from a whole life policy

Flexible premium schedule

A business will typically use which type of life insurance to cover their employees

Group policy

The type of multiple protection coverage that pays on the death of the last person is called

Hey survivorship life policy

And life insurance policy written on a contract for two people in which is payable upon the first death is called

Joint

Which type of life insurance is normally associated with a payor benefit rider

Juvenile insurance

What kind of life insurance policy covers 2 or more people with the death benefit payable upon the last persons death

Last survivor life insurance

A renewable term life insurance policy can be renewed

at a predetermined date or age, regardless of the insured's health

The least expensive option to pay off a 30 year mortgage balance would be

decreasing term life

Level premium permanent insurance accumulates a reserve that will eventually

equal the face amount of the policy

Index whole life insurance contains a securities component that acts as a

hedge against inflation

A limited payment whole life policy provides

lifetime protection

A permanent life insurance policy where the policyowner pays premiums for a specified number of years is called a(n)

limited pay policy

The premium for a modified whole life policy is

lower than the typical whole life policy during the first few years and then higher than typical for the remainder

Shirley has a $500,000 10-year non-renewable level term life policy. If she dies 15 years after the policy's inception date, how much will her beneficiary receive?

nothing

An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value interest free. The provision that allows this is called

partial surrender

Rob purchased a standard whole life policy with a $500,000 death benefit when he was age 30. His insurance agent told him the policy would be paid up if he reached age 100. The present cash value of the policy equals $250,000. Rob recently died at age 60, the death benefit would be

$500,000

A modified endowment contract is best described as

A life insurance contract which accumulates cash value is higher than the IRS will allow

All of these are valid options for an adjustable life policy except

A nonforfeiture option can be used to increase the death benefit

A policyowner may change two policy features on what type of life insurance?

Adjustable Life

Donald is the primary insured of a life insurance policy and adds a children's term rider. What is the advantage of adding this rider

Can be converted to permanent coverage without evidence of insurability

Jonas is a whole life insurance policy owner I would like to add coverage for his two children. Which of the following products would allow him to accomplish this

Child term rider

What happens to the coverage under a children's term rider when that child reaches a certain specified age

Coverage is eliminated

Which of these is not subject to income taxation under a MEC

Death benefit

Julie has a $100,000 30-year mortgage on her new home. What type of life insurance could she purchase that is designed to pay off the loan balance if she dies within the 30-year period?

Decreasing term insurance

When a decreasing term policy is purchased, it contains a decreasing death benefit and

Level premiums

A life insurance policy that has premiums fully paid up with any stated time period is called

Limited payment insurance

What does the word "level" in level term describe

The face amount

Joe has a life insurance policy that has a face amount of $300,000. After a number of years, the policies cash value accumulates to $50,000 and the face amount becomes $350,000. What kind of policy is this

Universal life policy

Which type of life insurance offers flexible premiums, a flexible death benefit, and the choice of how the cash value will be invested

Variable universal life policy

Which type of policy combines the flexibility of a universal life policy with investment choices

Variable universal life policy

A life insurance policy which contains cash values that vary according to its investment performance of stocks is called

Variable whole life

All of these statements concerning whole life insurance or false except

When a whole life policy is surrendered, income taxes may be owed

Decreasing term life insurance is often used to

provide coverage for a home mortgage

What is the automatic continuance of insurance coverage referred to as

renewal

Term insurance is appropriate for someone who

seeks temporary protection and lower premiums

Which of the following policies does not build cash value?

term

What types of life insurance are normally used for key employee indemnification?

term, whole, and universal life insurance

Pre-death distributions from a modified endowment contract (MEC) receive different tax treatment than other life insurance policies because

the MEC tends to be an investment vehicle

A securities license is required for life insurance producer to sell

variable life insurance

A renewable term life insurance policy allows the policyowner the right to renew the policy

without producing proof of insurability

Krissa purchases a 10-year level term life insurance policy that has a death benefit of $200,000. Which of these statements is true?

The face amount and premium will remain constant over the 10-year period

What is a Corredor in relation to a universal life insurance policy

The gap between the total death benefit in the policies cash value

The statement which best describes the relationship between the premiums of a whole life policy and the premium payment. Is

The shorter the payment. The higher the premium

A life insurance policy that contains a guaranteed interest rate with the chance to earn a rate that is higher than the guaranteed rate is called

Universal Life

A life insurance policy that is subject to a contract interest rate is referred to as

Universal Life

A partial surrender is allowed in which of the following life policies?

Universal Life

Reggie purchased a life insurance policy with a face amount of $500,000. After 15 years, the cash value has accumulated to $100,000 and the policy's face amount has become $600,000. Which type of life insurance policy is this?

Universal Life