Types of life policies

The LEAST expensive first-year premium is found in which of the following policies?

annually renewable term

The death protection component of Universal Life Insurance is always

annually renewable term

in annuity, the accumulated money is converted into a stream of income during which time period?

annuitization period

What is another name for interest-sensitive whole life insurance?

current assumption life

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 term

An insured purchased a Life Insurance policy. The agent told him that depending upon the company's investments and expense factors, the cash values could change from those shown in the policy at issue time. The policy is a/an

interest sensitive whole life

which of the following is true regarding the accumulation period of an annuity

it is a period during which the payments into the annuity grow tax deferred

which statement is NOT true regarding a straight life policy

its premiums steadily decreases over time, in response to its growing cash value

The premium of a survivorship life policy compared with that of a joint life policy would be

lower

Which Universal Life option has a gradually increasing cash value and a level death benefit?

option A

Which two terms are associated directly with the way an annuity is funded?

single payment or periodic payments

All of the following entities regulate variable life policies EXCEPT

the guaranty association

All of the following are true of an annuity owner EXCEPT

the owner must be the party to receive benefits

Which of the following determines the cash value of a variable life policy?

the performance of the policy portfolio

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