chapter 2

whose life expectancy is taken into consideration in an annuity?

annuitant

which of the following is an example of a limited pay life policy

life paid up at age 65

what allows the variable annuity income to fluctuate?

changes in investment performance

the primary purpose of an annuity is to

provide income for life

an annually renewable Term Policy

renews each year with an increased premium

which type of life insurance policy generates immediate cash value?

single premium

which policy is paid up early and endows at age 100?

20 pay life

in a variable annuity, who regulates separate account?

SEC

when the insured purchase a new home, he wanted to purchase a life insurance policy that would protect his family against losing it should he die before the mortgage was paid. Which of the following policies is best suited for that need?

decreasing term

which of the following would be considered a disadvantage of term insurance?

if the insured dies after the end of the term, there is no death benefit to the beneficiary.

the time period during which an annuitant contributes to an annuity is called

the accumulation period

which of the following statements is true regarding a universal life policy?

the premiums can be decreased by the insured

adjustable Life policies are constructed using which of the following as their base policy?

whole life

what type of policy has premiums paid at 100, and upon age 100 pays the face amount as an endowment?

straight whole life

an insured has a policy in which the cash values increased to a point where the corridor was utilized. What type of policy does the insured have?

universal life Option 1

an individual inherited a large sum of money at age 40 and wanted to use it to provide a guaranteed income after his retirement at age 60. Which of the following types of annuities would best meet this need?

variable

which of the following annuity products requires an agent to hold Securities license?

variable annuities