ins.2) Life Products

How long will a life annuity with a 15 year period certain pay?

...

what are the death benefit options on whole life policy

A) level death benefit B) increasing death benefit

what are the two phases of annuity?

Accumulation and Annuitization (Pay-in and Pay-out)

Who receives income payments from an annuity?

Annuitant

what is the main reason for purchasing an annuity

To provide income that the annuitant cannot outlive

when would a 20 pay whole life policy endow

When the insured reaches age 100

what type of premium is charged on a straight life policy

a level premium for the life of the insured

what type of licenses are required to sell variable annuities

a life insurance license AND a securities license

in flexible premium payment annuities, the term flexible refers to what

amount of premium

in flexible premium payment annuities, the term flexible refers to what?

amount of premium

The death protection component of a universal life policy is expressed as what type of coverage?

annually renewable term

the death protection component of a universal life policy is expressed as what type of coverage

annually renewable term

Whose life expectancy is taken into consideration in an annuity contract?

annuitant

if there is no named beneficiary for the annuity benefits, to which entity will the benefits be paid?

annuitants estate

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

annuitization period

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

beneficiary

if the annuitant dies during the accumulation period, who will receive the death annuity benefit?

beneficiary

what happens to the cash value when a whole life insurance policy matures

cash value is paid to policy owner

what happens to the cash value when a whole life policy matures

cash value is paid to the policy owner

an individual has just borrowed 10,000 on a 5 year note from his bank. The note is due in installments, what type of life insurance policy would be best suited to this situation

decreasing term

what type of life insurance is best suited to cover a mortgage?

decreasing term

if the annuitant dies before the annuitization period, what will the beneficiary receive

either the amount paid into the annuity or the cash value, whichever is greater

what type of annuity credits its interest based upon an index such as S&P 500 index

equity indexed annuity

What policy component must decrease in decreasing term insurance?

face amount

what does the term "level" refer in to level term insurance

face amount

what policy component must decrease in decreasing term insurance

face amt

an annuity purchased with multiple payments that begin income payments after one year from the moment of purchase is known as what type of annuity

flexibile premium deffered annuity

under a 20 pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid for what time period?

for 20 years or until the insured/s death, whichever occurs first

under a 20-year whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid for what time period?

for the first 20 years or until the insured's death, whichever occurs first

how long will a life annuity with a 15 year period certain pay?

for the life of the annuitant unless he/she dies within the first 15 years of the annuitization period, then the payments will last for 15 years

what are two classifications of annuities according to the time when the annuity payments begin?

immediate and deffered

what type of annuity can be purchased with a single premium

immediate annuity

what type of annuity can be purchased with a single premium?

immediate annuity

If an annuity provides a set amount of income for two or more persons with the income ceasing upon the first death, what type of annuity is that?

joint life annuity

if an annuity provides a set amount of income for two or more persons with the income ceasing upon the first death, what type of annuity is that

joint life annuity

mortality tables are used by insurance companies to predict what?

life expectancy and death rates for specific groups of individuals

what annuity settlement option provides income payments for the duration of his or her life, and also guarantees payments for a specified number of years

life income with period certain

what annuity settlement option provides income payments to the annuitant of his or her life, and also guarantees payment for a specified number of years?

life income with period certain

what type of life insurance policy is Life Paid up at age 65

limited pay whole life

how soon can income payments begin in an immediate annuity?

no later than 1 year after the annuity purchase

with a single premium deferred annuity, when will the annuity payments become available?

no sooner than 1 year after the annuity purchase

can a business or a corporatin be an annuitant?

no, an annuitant must always be a natural person

what universal life option has gradually increasing cash value and a level death benefit

option A

what type of life insurance offers an applicant a cash value element

permanent insurance (usually whole life)

what type of life insurance offers an applicants cash value?

permanent insurance (usually whole life)

what elements of an adjustable life policy can be changed by policyowners

the amount and payment period of the premium, the face amount, and the period for protection

regarding annuity payments, what is the difference between the annuitant and the beneficiary of an annuity?

the annuitant payments from the annuity during the annuitization period; the beneficiary receives benefits after the annuitants death.

Regarding annuity payments, what is the difference between the annuitant and the beneficiary of an annuity?

the annuitant receives payments from the annuity during the annuitization period; the beneficiary receives benefits after the annuitants death

in annually renewable term policies, what is the annual premium based upon

the insured attained age

in annually renewable term policies, what is the annual premium based upon?

the insured's attained age

who bears the investment risk of a fixed annuity

the insurer

what is the difference between a single premium and a flexible premium payment options in a deferred annuity?

the number of payments that purchase the annuity

who is entitled to the cash value of a life insurance policy

the policyowner

How is the premium determined in a joint life insurance policy?

the premium is based on the avg age of the insureds.

what happens to the premium in an annually renewable life insurance policy?

the premium will increase with each renewal

Why are policy loans not available on term insurance?

there is no cash value to borrow against

under Option B in a universal life policy, what happens to the death benefit?

under option B, the death benefit increases each year by the amount of cash value increases

in what type of life insurance policies can the policyowner skip premium payments without the policy lapsing?

universal life

in a joint life policy, when is death benefit paid?

upon first death

what type of annuity requires an agent to have a securities license?

variable annuity

when does an adjustable life accumulate cash value?

when the premiums paid are more than the cost of the policy

when does an adjustable life policy accumulate with cash?

when the premiums paid are more than the cost of the policy

what type of life insurance policy provides permanent protection?

whole life

what type of insurance would perform the function of cash accumulation?

whole life insurance