#3 Life Policies T

Which of the following is a feature of a variable annuity?

Benefit payment amounts are not guaranteed

Which of the following is not a term for the period of time during which the annuitant or the beneficiary receives income?

Depreciation period

An agent selling variable annuities must be registered with

FINRA

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.

Which of the following is not true regarding the accumulation period of an annuity?

It would not occur in a deferred annuity.

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

A married couple owns a permanent policy which covers both their lives and pays the death benefit only upon the death of the first insured. Which policy is that?

Joint Life Policy

If a contract provides a set amount of income for two or more persons with the income stopping upon the first death of the insured, it is called a

Joint life annuity

An insured has a life 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

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 insured's age 100 is called

Single premium whole life

Which of the following is true regarding variable annuities?

The annuitant assumes the risks on investment

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%

The type of policy that can be changed from one that does not accumulate cash value to the one that does is a

convertible term policy

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

All of the following are true regarding a decreasing term policy except

the payable premium amount steadily declines throughout the duration of the contract