Life Insurance Policies / Life Insurance
single premium whole life
An insurance policy that only requires a payment of premium at its inception and no further premiums contributions, and in addition to providing insurance protection for the life of the insured, endows at the insured's age 100, is called what?
15 days
An insured gets a notice about converting group coverage to individual coverage 5 days before the end of the conversion period. In this situation, how long will the insured have to convert the policy?
limited-pay life
An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?
the insured may renew the policy for another 10 years, but at a higher premium rate
An insured purchased a 10-year level term policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term?
increases annually
Annually Renewable Term policies provide a level death benefit for a premium that does what?
annually renewable term policy with a cash value account
A universal life insurance policy is best described as what?
the policy contains sufficient cash value to cover the cost of insurance
The policyowner of a Universal Life policy may skip paying the premium and the policy will not lapse as long as what?
lower
The premium of a survivorship life policy compared with that of a joint life policy would be what?
when the premiums paid are more than the cost of the policy
When does an adjustable life policy accumulate cash value?
option B
Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?
face amount
Which policy component decreases in decreasing term insurance?
single premium
Which type of life insurance policy generates immediate cash value?
limited pay life policy
Whole life premiums paid up until the insured reaches age 65 is an example of what?
limited pay whole life
Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?
No
Can a credit life insurance pay out more than the balance of the debt?
No
Does term insurance have cash value?
annually renewable term insurance
Group insurance is written how?
the premium is level
How is the premium handled within a term policy?
evidence of insurability
If an employee wants to join group life insurance coverage outside of the open enrollment period, what would the employee have to provide?
policy's cash value
If an insured skips a premium payment on a universal life policy, the missing premium may be deducted from what?
individual insureds
In group insurance, the master contract is for the employer, and certificates of insurance are for who?
the premium remains level
In term policies, what happens to the premium throughout the term of the policy?
universal life
In what type of life insurance policies can the policyowner skip premium payments without the policy lapsing?
adjusted to the insured's age at the time of renewal
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 what?
joint life policy
Premiums rates on what life policy are determined by averaging the ages of both insureds?
a separate account
The death benefit in a variable universal life policy depends on the performance of what?
annually renewable term
The death protection component of Universal Life Insurance is always what?
the amount to be repaid under the contract
The initial amount of credit life insurance may not exceed what?
second to die
A survivorship life is paid out after who dies?
universal life
What Life Insurance policies would be considered interest sensitive?
5 years
You must be under a group life plan for how long to convert to a individual life plan?
decreasing term
What type of life insurance is best suited to cover a mortgage?
universal life
What type of life insurance policy allows the policyowner to pay more or less than the planned premium?
a level annual premium for the life of the insured
A Straight Life policy charges what?
guaranteed and current
A Universal Life insurance policy has two types of interest rates that are called what?
for 20 years or until death, whichever occurs first
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 how?
for 20 years or until death, whichever occurs first.
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 how?
option A
What Universal Life option has a gradually increasing cash value and a level death benefit?
insurance and cash accounts
What are the two components of a universal policy?
cash value is paid to the policyowner
What happens to the cash value when a whole life insurance policy matures?
to keep the policy in force
What is the purpose of establishing the target premium for a universal life policy?
term
What kind of insurance provides the greatest amount of coverage for the lowest premium?
whole life
What life insurance policy provides lifetime protection and accumulates cash value?
option B
What life policy death benefit gradually increases each year by the amount that the cash value increases?
level
What means a life insurance's death benefit's face amount value does not change?
straight life
What policies would be classified as a traditional level premium contract?
term
What type of insurance policy would provide the greatest amount of protection for a temporary period during which an insured will have limited financial resources?
limited-pay whole life
What type of life insurance policy is Life Paid-up at Age 65?
term
What type of life insurance policy offers pure death protection?
option a
What would have an IRS required corridor or gap between the cash value and the death benefit for the life insurance?
target premium
What would help prevent a universal life policy from lapsing?
31 days
When an employee terminates coverage under group insurance policy, coverage continues in force for how long?
individual life insurance
When converting from group life to what insurance, evidence of insurability is not required?
first to die
A joint life policy is paid out after who dies?
face amount
What does "level" refer to in level term insurance?
whole life
If an insured terminates membership in group life insurance, to what type of insurance can the insured convert the coverage?
there is no cash value to borrow against
Why are policy loans not available on term insurance?
required a premium increase each renewal
A man decided to purchase a $100,000 Annually Renewable Term Life Policy to provide additional protection until his children finished college. He discovered that his policy what?
decreasing term
An individual had 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?