Chapter 2 quiz: Types of life policies

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

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

Which policy component decreases in decreasing term insurance?

Face amount

which of the following types pf policies allows the policy-owner to skip premium payments provided that there is enough cash value in the policy to cover the premium amount?

Universal life

what type of premium do both universal life and variable universal life policies have ?

flexible

which of the following is not true regarding the annuitant?

the annuitant cannot be the same person as the annuity owner.

All of the following statements about equity index annuities are correct except

the annuitant receives a fixed amount of return.

If the annuitant dies during the accumulation period, who will receive the annuity benefits?

the beneficiary

An insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured, and natures at the insured's age 100 is called

Single premium whole life

The LEAST expensive first-year premium is found in which of the following polices.

annually renewable term

Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be

adjusted to the Insured's age at the time of renewal

A return premium term life policy is written as what type of term coverage?

increasing

What is the purpose of establishing the target premium for a universal life policy?

tp keep the policy In force

all 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%

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