Life and Health: Life Insurance Policies
A return of 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?
To keep the policy in force
Annually renewable term policies provide a level death benefit for a premium that
Increases Annually
the death protection component of Universal Life Insurances is always
Annually Renewable Term
Which of the following employees under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated?
Those who have been insured under the plan for at least 5 years
Which of the following life insurance policies would be considered interest sensitive?
Universal Life
Which of the following types of policies allows the policyowner to skip premiuym payments, provided that there is enough cash vaslue in the policy to cover the premium amount
Universal Life
What type of life insurance policy allows the policyowner to pay more or less than the planner premium?
Universal life
What characteristic makes whole life permanent protection
coverage until death or age 100
Which component increases in the increasing term insurance
Death benefit
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
Variable Life insurance is based on what kind of premium?
Level fixed
All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy?
Lower
Which option for Universal Life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured
Option B
All of the following are true regarding a decreasing term policy EXCEPT
The payable premium amount steadily declines throughout the duration of the contract.
Which of the following statements is correct regarding a whole life policy
The policyowner is entitled to loans
What does "level" refer to in level term insurance?
Face amount
Which of the following best describes annually renewable term insurance?
It is level term insurance
All of the following are true regarding a decreasing term policy EXCEPT
The payable premium amount steadily declines throughout the duration of the contract
A universal life insurance policy has two types of interest rates that are called
Guaranteed and Current
The death benefit in a variable universal life policy
Depends on the performance of a separate account
All other factors being equal, the least expensive first-year premium payment is found in
Annually Renewable Term
What are the two components of a universal policy?
Insurance and cash account
The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?
The death benefit can be increased by providing evidence of insurability