Life Insurance

T and S are named Ko primary beneficiaries on a $500,000 accidental death and dismemberment policy ensuring their father. Their mother was named contingent beneficiary. Five years later S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive?

$0 because T is still alive and the sole primary Beneficiary, while the mother is still the contingent beneficiary

S buys a $50,000 whole life policy with a $50,000 Accidental Death and Dismemberment rider. S dies 1 year later of natural causes. How much will the insurer pay the beneficiary?

$50,000

How do you life insurance companies handle cases where the insured commit suicide within the contracts stated contestable period?

Claims are denied under the suicide clause of the policy

Q the producer gave his client a rebate as an a enticement To purchase insurance. Q may be found guilty of a

Class B misdemeanor

_______ of personal life insurance premiums is usually deductible for federal income tax purposes

0%

A hearing must be held not later than ____ days after the request for the hearing is received by the Director

10 days

An individual participant personally receives eligible rollover funds from a profit sharing plan. What is the income tax withholding requirement for this transaction?

20% is withheld for income taxes

A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of these statements made by the producer would be correct?

20-Pay Life accumulates cash value faster than Straight Life

The holder of a business entity registration is required to notify the Director within ___ days of change of office location

30

A temporary insurance license is valid up to ____ days

90 days

Which of the following is considered a producers fiduciary responsibility?

Collect premiums and remit to the insurance company as soon as reasonably possible

When a policy owner exchanges a term policy for a whole life policy without providing proof of good health which of these apply?

Conversion provision

______ Could have claim to viatical settlement proceeds

Creditors

How are surrender charges the ducted in a life policy with a rear end loaded provision?

Deducted when the policy is discontinued

Illinois 10 day free look period for life insurance policies begins

Delivery date

In Illinois, the Free Look period begins with which of the following signed documents?

Delivery receipt

It is acceptable to discriminate the amount of benefits for life and health policies between individuals of

Different classes

C is a key employee of ABC Inc. If a key employee life policy is purchase on her life which of these statements would be true?

ABC is the policy owner, C is the insured, and ABC is the beneficiary

The option that provides an additional death benefit for a limited amount of time at the lowest possible cost is called

Accidental Death and Dismemberment rider (AD&D)

A policy owner may generate taxable income from which of the following dividend options?

Accumulation at interest

A term life writer offers the insured

Additional life coverage

Delivery of Policy

All policies, certificates, or other evidence of insurance that are received by an insurance producer must be delivered or mailed to the insured within 10 calendar days of the receipt by the producer.

The Life and Health Insurance Guaranty Association is

Assumes the financial obligations of insolvent insurance companies

S Has a whole life policy with a premium payment due soon. Which provision would keep the policy in force of us does not make the required payment and the policy has had a quick cash value from which the premium payment can be made?

Automatic policy loan

An automatic premium loan provision is designed to

Avoid a policy lapse

Which writer provides coverage for a child under a parents life insurance policy?

Child term Rider

N Is covered by a term life policy and does not make the required premium payments which was due August 1. And dies September 15. Which action will the insured take?

Claim will be denied In the situation the insurance company will deny the claim as the policy would have lapse due to nonpayment by September 15

The Guaranty fund

Ensures the claims filed against insolvent insurance companies will be paid

An underwriter determines that a life insurance applicants risk should be reclassify due to a health issue. This policy may be issued with a

Extra premium

Which Federal law allows an insurer to obtain an inspection report on a potential insured?

Fair Credit Reporting Act

N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for life. What type of annuity did N purchase?

Fixed Deferred

How is the life insurance and health insurance guaranty associated funded

From member companies

A hearing must be held before a producers license can be suspended or revoked. Prior to the hearing, the Director is required to

Give a written notice to the producer

The purpose of the ____Clause is to avoid an unintentional lapse of a life insurance policy

Grace

Uniform Simultaneous Death Act

If both insured and primary beneficiary are killed in the same accident and there is insufficient evidence to show who died first, policy proceeds will be paid as if the insured died last. In other words the proceeds will be paid to the secondary or contingent beneficiary

During a sales presentation for a participating life insurance policy a producer must

Include a statement that dividends are not guaranteed

All of these are required to be included in a life insurance illustration except

Insurers morality table

How are policy owner dividends treated in regards to income tax?

Interest on accumulations is taxed

All of the settlement options involve the systematic liquidation of the death proceeds an event of the insured's death except

Interest only

Dividends paid from a life insurance policy are?

Issued by the insurer

And insured's inability to perform two or more activities of daily living may trigger which type of life policy writer?

Long term care

One roll of the life and health guaranty association is to

Maintain public confidence In the promises of ensures

During the course of an insurance transaction, if a producer makes a false or incomplete statement he/she could be found guilty of

Misr

When a life insurance policy exceeds certain IRS table values, the result would create which of the following?

Modified Endowment Contract (MEC)

In the event of a replacement what must be given to the insurance applicant at the time of application

Notice regarding

Variable life policy offers

Offers the owner investment in products such as money market funds long-term bonds or equities

Which of these contracts are affected by replacement regulations

Ordinary life insurance

P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to

P only

K owns a Whole Life policy. If K wants an increasing Death Benefit to protect against inflation, which Dividend Option should she chose?

Paid-Up Additional Insurance

Which statement is true in regards to a policy loan?

Past-due interest on a policy loan is added to the total debt

And accelerated benefit is table based upon the occurrence of a qualifying event. This qualifying event is certified by

Physician

M am has an insurance policy that also has an outstanding policy loan at the time of Ms death. The The insurer will deduct the outstanding loan balance from the

Policy proceeds

Life insurance replacement regulation protects the interest of

Policyowner

The ______ is authorized to assign a life insurance policy as collateral for a loan

Policyowner

What benefit does the Payor clause on a juvenile life policy provide?

Premiums are waived if payor becomes disabled

Payer benefit rider

Provides for waiver of premium if adult payor of the policy dies or becomes totally disabled

Which of the following triggers an accelerated living benefit

Qualifying event

Q The producer has recently replaced one insurance policy with another in Illinois replacement is

Regulated and requires full disclosure

Which of these is not an unfair method of competition?

Replace coverage written by another producer

The act Replacing an existing insurance policy with another is called

Replacement

Which factors are taken into consideration when an insurance company determines the premium rate for a whole life policy on an applicant?

Risk classification

The Director is not permitted to

Set insurance rates within the state

P is a producer who notices 5 questions on a life application were not answered. What actions should P take?

Set up a meeting with the applicant to answer the remaining questions

What would be a potential consequence for a producer who miss appropriate insurance funds held in the fiduciary capacity

Suspend or revoke the producers license

Which type of life policy contains a monthly morality charge as well as self-directed investment choices?

Variable Universal Life

A life insurance policy that provides a policy owner with cash value along with a level face amount is called

Whole life

T purchased a life insurance policy. T is entitled to review the policy and return it for a full refund

Within 10 days after delivery of the policy

Consumer Reports

Written and /or oral statements regarding a consumer's credit, character, reputation, or habits collected by a reporting agency from employment records, credit reports, and other public sources.

Variable Universal Life

a universal policy where the premiums are invested in variable rate earning assets

When does a guaranteed insurability rider allow the insured to buy additional coverage

at future dates specified in the contract with no evidence of insurability required

An employee of 20 years recently retired at age 59 1/2. This employees group life contract can be

converted to an individual permanent policy at an individual rate

Which Unfair Trade Practice involves Making false statements about the financial condition of another insurance company?

defamation

How often must an insurance producers license be renewed

every 2 years

D is the Policy owner and insured for a $50,000 life insurance policy. The beneficiary is Ds wife. D and his wife divorce and D remarries, transferring ownership of his policy to his new wife. If D dies without making any further changes, to whom will the policy proceeds be paid to?

ex-wife Ds ex-wife is still the beneficiary of this policy even though policy ownership has changed to his current spouse

Replacement can be defined as

exchanging an existing policy for a new policy

A(n) _______ contained in a life insurance policy states that the policy will NOT cover certain risks.

exclusion

The Director is appointed by the

governor

During the course of an insurance business transaction who does the producer legally represent?

insurance company

Quarterly premium payments increase the annual cost of insurance because

interest to the insurer is decreased while the administrative costs are increased

In order for coverage on a non-medical insurance application to take affect the same day the producer must collect a signed application and

the initial premium

The part of a life insurance policy guaranteed to be true is called?

warranty

Premium payments

can be paid annually, semiannually, quarterly, or monthly The higher the frequency of payments the higher the premium

How are Roth IRA distributions normally taxed?

Distributions are received tax-free

A universal life policy is sometimes referred to as an unbundled life policy because the owner can see the interest earned, cost of insurance, and

Expense charges

Consideration clause

In a life insurance policy specifies the amount and frequency of premium payments that the policy owners must make to keep the insurance in force

Which of the following types of insurance may a limited limes producer sell?

Industrial life

Information obtained from a phone conversation to the proposed insured can be found in which of these reports?

Inspection report

If the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first where are the death proceeds to be directed under the uniform simultaneous death act

Insured's contingent beneficiary

Twisting

Is inducing or attempting to induce any insured person through miss reputation to lapse forfeit or surrender insurance

Which of the following statements about accumulated interest earned on dividends from an insurance policy is true?

It is taxed as ordinary income

K Is an insured under a life insurance policy on by a third-party. Which of these statements is true?

K has no ownership rights When a life insurance policy is owned by a third-party, the insured has no ownership right

A policy owner is able to choose the frequency of premium payments through what policy feature?

Premium Mode

Which statement is correct regarding the premium payment schedule for a whole life policies?

Premiums are payable throughout the insured's lifetime/ coverage lasts until death of the insured

universal life policy

an insurance product combining features of both whole life and term life policies

T cash surrenders a recently-issued whole life policy. He also requests that the proceeds be payable to an unrelated third party. T would likely be red-flagged for violation of

anti-money laundering rules

The fair credit reporting act of 1970

applicant has right to see all the stored information upon which the policy is either approved or denied Producers for the collection and disclose of information obtained on the consumers through investigation and credit reports

In a life insurance policy which feature states that the policy will not cover certain risks?

exclusion

N Is a student pilot with a large life insurance policy. Which of these features would limit the insurers obligation in event N was killed while flying as a student pilot?

exclusion

When an insurer issues a policy that refuses to cover certain risks This is referred to as

exclusion

An example of an unfair claims practice would be

failing to effectuate prompt, fair, and equitable settlements of a claim

A license may be denied, suspended, or revoked if the licensee

is found guilty of misrepresentation

Which of these is not an element of life insurance premiums?

morbidity rate

An example of rebating would be

offering a client something of value not stated in the contract in exchange for their business

An example of unfair discrimination would be

offering different terms of coverage for different policyowners having the same risk classification

B recently died and was insured with a life insurance policy for over five years. During the claims process, the insurer discovered that B had understated his age by 5 years at the time of application. In this situation, the insurer will

pay the amount that the premium would have purchased at the correct age

Which life insurance rider typically appears on a juvenile life insurance policy?

payor benefit rider

Consumer reports requested by an underwriter during the application process of a life insurance policy can be used to determine

probability of making timely premium payments

A policy that becomes a modified endowment contract

will lose many of its tax advantages

E and F are business partners. Each takes out a $500,000 life insurance policy on the other, naming himself as primary beneficiary. E and F eventually terminate their business, and four months later E dies. Although E was married with three children at the time of death, the primary beneficiary is still F. However, an insurable interest no longer exists. Where will the proceeds from E's life insurance policy be directed to?

*F (In this situation, the proceeds from E's life insurance policy will go to F. Insurable interest only needs to exist at the time of application.)

A producer is attempting to replace an existing life insurance policy with a new one. What must this producer submit as part of the application?

A signed statement by the applicant regarding the replacement

And a viatical settlement how much does a policy owner receive for a life insurance policy?

Amount less than the death benefit

The consideration clause in a life insurance contract contains what pertinent information?

Amount of premium payments and when they are due

Fix deferred annuity

An annuity that pays out a fixed amount for life starting at a future date

Which of the following is a requirement to attain a nonresident producer license?

Be licensed as a producer in the producer's state of domicile

Upon policy delivery a signed good health statement is requested from the applicant. Why would this be necessary

The initial premium was NOT submitted with the application

Variable whole life insurance can be described as

both an insurance and securities product

Under a Graded Premium Whole Life policy,

the premium increases each year during the early years of the contract and remains the same after that time

The Consideration clause of an insurance contract includes

the schedule and amount of premium payments

An example of an unfair claims settlement practice is

turning down a claim without providing the basis of denial

All of these are considered to be a benefit under social security except for

unemployment

A ____ life policy offers the owner investment and products such as money market funds, long-term bonds and equities

variable

When a producer submits an insurance application the application is required to contain the producers

Name and signature

What is the minimum age for an individual to be a licensed insurance producer?

18

How many days is a temporary producers license valid

180

Every ___ years a Producer must complete 24 hours of continuing education

2

J Is 35 years old and looking to purchase a whole life insurance policy. Which of the following types of policies will provide the most rapid growth of cash value?

20-pay life

What type of policy would offer a 40 year old the quickest accumulation of cash value?

20-pay life

A policy owner decides to cancel an insurance policy within 90 days of the issue date. As a result of this cancellation the producer is required to refund a prorated portion of any fee charge within ____ days of receiving the cancellation notice

30 days

A producer must report a felony conviction to the Director within _____ days of the convection

30 days

The Director must be notified of a producers change of home address within

30 days

According to Illinois insurance law life insurance claim payments made after _____ days from receipt of satisfactory proof of loss must receive the insurance current interest rate

31

Which of these is an element of a variable life policy?

A fixed, level premium

All of these statements concerning a licensee is responsibility for premiums received are true except

A licensee is not required to maintain a separate bank account as long as the funds are held responsibly from the books or records of the Licensee

Which of these is not a reason for a business to buy key person life insurance?

A pension deficiency if the key employee dies

Which of the following is considered to be misrepresentation

A producer guaranteeing a policies dividends

Illinois insurance laws specifically allows the Director to issue a temporary license to which of the following individuals?

A surviving spouse of a deceased producer

Which of these statements accurately reflects Illinois law regarding life insurance advertisement

And insurance agency is responsible for advertisements place by its insurance producers

Modified Endowment Contract (MEC)

Any cash value policy that builds cash value faster than a Seven-Pay Whole Life Contract and therefore loses the tax advantages of life insurance.

All of these must be included on an insurance producers license except

Appointing insurance company

What action will ensure take if an interest payment on a policy loan is not made it on time?

Automatically add the amount of interest due to the loan balance

Which of these is not considered to be a cost connected with an individual's death?

Business expenses

S It's covered by a whole life policy. Which insurance product can cover his children?

Child term rider

Which provision allows the policy owner to change a term life policy to a permanent one without providing proof of good health?

Conversion provision

Which of these actions does not constitute a life insurance policy replacement

Convert term coverage to a whole life policy

D Needs life insurance that provides coverage for only a limited amount of time while also paying the lowest possible premium. What kind of policy is needed?

Level term

Level term insurance

Life Insurance written to cover a need for a specified period of time at the lowest premium

The Illinois life and health insurance guaranty association has regulations that apply only to

Life and health policies issued by companies authorized in Illinois

The Director of insurance is authorized to

Make reasonable insurance rules and regulations

And Illinois producer must do which of the following to continue as a residential licensee?

Meet continuing education requirements

Stating that dividends are guaranteed is considered to be

Misrepresentation

Which unfair trade practice involves a producer suggesting that an insurance policy is like a share of stock?

Misrepresentation

_____ Can be defined as making an unfair conference comparison of two insurance policies

Misrepresentation

What must be signed by both the producer an applicant when an existing life insurance policy is being re-issued with a reduction in cash value

Notice regarding replacement

Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies?

Policyowner

Which of the following would be a valid reason for suspending or revoking an insurance producers license?

Practicing in the act of twisting

K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true?

Proceeds will be payable to Ks estate if P passes within a specified time Under the common disaster provision, proceeds will be payable to Kay's estate if P dies within a specified time

Which of the following is not a valid reason for the Director to revoke a producers license?

Producer is insolvent

Which of the following is not a valid reason for the Director to suspend or revoke a producers license?

Producer represents more than one insurance company

An applicant may not be refused insurance coverage due to

Race

What are valid reasons for purchasing life insurance on the life of a minor

Reasons for purchasing life insurance would be provides funds for final expenses if the child were to die, provides living benefits for the child's college education, provides child with insurance now in case the child becomes insurable later

Which of the following is an example of a non-forfeiture option

Reduced paid up option

A producer has influenced an existing policy owner to convert an existing whole life policy to reduce paid up insurance. The producer then sells the policy owner a new universal life policy. This transaction is called

Replacement

Which of these actions by a licensed he would not likely result in license suspension or revocation?

Sharon commission with another similar license agent

Upon delivery of a rated life insurance policy the producer must obtain each of the following except

Signed HIPAA disclosure - the HIPAA disclosure should be taken at the time of sale with the application

Which of the following life insurance policies combine term insurance with an investment element

Universal Life

Which of the following statements is correct about an agent who is taking an insurance application?

The agent should have the applicant initial any changes made on the application

Which of the following life insurance policies combine term insurance with an investment element?

Universal Life

On a life insurance policy who is qualified to change the beneficiary designation?

The policyowner has the right to change the beneficiary designation. However, consent may needed by the current beneficiary if designated as irrevocable.

Who signs a notice regarding replacement form when an application is taken for a new life insurance policy that replaces an existing one?

The producer in the applicant

What are the three reasons for a business to buy key person life insurance?

The reduction in sales as a direct result from death of key employee, a void in leader ship if the key person were to die, the loss of company revenue while a replacement is being sought

Insurance applications must contain which of these disclosure requirements?

The soliciting producers name

J Is a producer who has induced an insured through miss reputation to surrender an existing insurance policy. What is J guilty of?

Twisting

Life insurance companies are required to establish and maintain any anti-money laundering in compliance program according to which federal regulation?

USA Patriot act

An individual received a quote from an insurance company that is a different rate from individuals in the same risk class. The insurance company may be accused of

Unfair discrimination

The cash value in a _______ life policy may fluctuate to reflect changing assumptions regarding morality cost, interest rates, and expense factors

Universal

Which of these types of life insurance allows the policy owner to have a level premiums and to also choose from a selection of investment options?

Variable Life

Which of the following statements is correct about the directors authority to examine the business for records of the producer?

Whenever deemed necessary

modified whole life insurance

stepped premiums that allow young people to pay smaller premiums when they are making less, then after a specific time, the premiums step up to a higher level as the insured's income increases

P died five years after purchasing a life policy. While investigating the claim the insured discovered material misrepresentations made by pee during the application process which of these actions will the insurer take?

Beneficiary will be paid the death benefit

Which of the following statements about noncontributory love employee group life insurance is false?

A minimum number of employees is required to participate

irrevocable

A policy owner would like to change the beneficiary on a life insurance policy and make the change permanent which type of designation would for fill this need?

All are true statements regarding the underwriting process except

Aids and HIV virus exams can be conducted in a discriminatory fashion

whole life policy

An insurance plan in which the policyholder pays a specified premium each year for as long as he or she lives; also called a straight life policy, cash-value life policy, or ordinary life policy.

What does the insuring agreement in a life insurance contract establish?

An insurer's basic promise

What is the initial source of underwriting for an insurance policy?

Application containing statements from the insured

An incomplete life insurance application submitted to an insurer will result in which of these actions?

Application will be returned to the writing agent

What action can a policy owner take if an application for a bank loan requires collateral

Assign policy ownership to the bank

A policy loan is made possible by which of these life insurance policy features?

Cash value provision

A whole life insurance policy owner does not have the right to

Change the grace period

Adjustable Life

Life insurance which permits changes in the face amount, premium amount, period of protection, and the duration of the premium payment period.

T took out 50,000 life insurance policy with an accidental death and dismemberment rider. Five years later, T commit suicide. How much will the insurer pay?

50,000

Three law partners from a cross purchase buy and sell agreement. This agreement is funded with individual life insurance. How many total life policies are needed for this agreement?

6

Which statement is true regarding a variable whole life policy

A minimum guaranteed Death benefit is provided

Which of these types of policies may not have the automatic premium loan provision attached to it?

Decreasing Term The Automatic Premium Loan provision can be incorporated into all of these policies EXCEPT decreasing term.

Q applied for Life Insurance and submitted the initial Premium on January 1. The policy was issued February 1 but it was not delivered by the agent until February 7. Q dissatisfied and returns the policy February 13. How will the ensure handle this situation?

Policy was returned within the free look period, premium will be fully refunded

The advantage of reinstating an original life policy is

The premiums are based on a younger age

When funds are shifted straight from one IRA to another IRA what percentage of the tax is withheld?

There is no tax withheld on an IRA transfer

Which of these is considered a statement that is a shirt to be true and every respect?

Warranty

ABC insurance company has excepted a life insurance application which contains unanswered questions. The company that makes the application part of the life contracts. In this situation the insurer has

Waved one of its legal rights

When is the face amount of a whole life policy paid?

When the insured dies or at the policy's maturity date, whichever happens first

B owns a whole life policy with a guaranteed insurability option that allows him to purchase, without evidence of insurability, stated Amounts of

additional Whole Life coverage at specified times

Conversion provision

allows policy owner to convert 1 type of life insurance to another - have to convert to same or lower death benefit

P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P purchase?

deferred

A policy owner's rights are limited under which beneficiary designation?

irrevocable

Q is severely injured in an automobile accident and becomes totally disabled. How many months must Q be disabled before being able to file for Social Security disability benefits?

5 months

Which of the following statements is correct about accelerated death benefits?

Must have a terminal illness to qualify

IRS states

That withdraws of funds from a profit-sharing plan may be subject to 10% tax penalty in addition to income taxes if they are made before age 59 1/2. This same early withdrawal penalty applies to find taken out of 401(k) plans and traditional individual retirement accounts

What kind of life policy either pays the face value upon the death of the insured or when the insured reaches age 100?

whole life

Which provision prevents an insured from changing the terms of the contract with the policy owner by referring to documents not found within the policy itself?

Entire contract provision found at the beginning of the policy states that the policy document the application and any attached writers constitute the entire contract. Nothing may be incorporated by reference meaning this policy cannot refer to any outside documents as being part of the contract

Tom has a qualified retirement plan with his employer that is currently considered to be 80% vested. How can this be interpreted?

If Tom's employment is terminated 20% of the funds would be forfeited

Which of these is not a reason for purchasing Life Insurance on the life of a minor?

If both parents were to die, it would provide death benefits to the child

The type of annuity that can be purchased with one monetary Deposit is called a

Immediate annuity

USA Patriot Act

Includes provisions intended to prevent the financial service industry, including the insurance sector, from being used for Money laundering and terrorist financing by criminals and terrorist

At the age of 45 and individual withdraws $50,000 from his qualified profit sharing plan and then deposit this money into a personal savings account. This action would result in

Income tax and a 10% penalty assessed upon funds withdrawn from the qualified plan

Who makes the legally enforceable promise says in an on lateral insurance policy?

Insurance company

Variable Life Insurance Policy

Insurance contract that provides financial compensation to the insured's named beneficiary if the insured dies while the policy is in force. The insurance company guarantees a minimum death benefit as long as premiums are paid. The cash value of the policy is determined by the performance of separate accounts and is not guaranteed.

Which of these needs is satisfied by adjustable life insurance?

Insured's need for flexible premiums

Which of these arrangements allows one to bypass insurable interest laws?

Investor-Originated Life Insurance

Investor Originated Life Insurance (IOLI)

Is used to circumvent state insurable interest statues. This is done one and investor persuade an individual to take out life insurance specifically for the purpose of selling the policy to the investor. The investor compensates the insured and makes the premiums, then collects the death benefit when the insured dies

On January 8, an applicant filled out an application for a life insurance policy but did not include the initial premium. The insurance company approved the application on January 14 and issued the policy January 15. The producer delivered the policy on January 26 and collected the first premium. When did the coverage become effective?

January 26

What type of life policy covers two lives and pays the face amount after one dies

Joint life policy

K, age 45, and his wife, age 43, have three children. They purchase a Family Policy that covers K's wife to age 65. All of these situations will pay a death benefit EXCEPT

K's wife dies at age 66

And architecture Firm would stand to lose a lot of money in event of a death of his project manager. Which type of policy should the firm purchase on its project manager?

Key person life policy