Life insurance types of policies 1

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All of these statements about Equity Indexed Life Insurance are correct EXCEPT

The premiums can be lowered or raised, based on investment performance

The cash value in a(n)_life policy may fluctuate to reflect changing assumptions regarding mortality cost, interest, and expense factors

Universal

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

Universal Life

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

Variable Life

All of these characteristics of an adjustable life policy except

face amount can be adjusted using policy dividends

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

whole life

A policy that becomes a Modified Endowment Contract (MEC)

will lose many of its tax advantages

if a 10 year life policy contains a renewability provision, the policy will renew

without evidence of insurability

Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it?

Decreasing term

F needs life insurance that provides coverage for only a limited amount of time with a death benefit that changes regularly according to a schedule. What kind of policy is needed?

Decreasing term policy

P owns a $25,000 Life Policy that pays the face amount to him if he lives to age 70, or to his beneficiary if he dies before age 70. What kind of policy does P own?

Endowment at age 70

P is looking to purchase a life insurance policy that will pay a stated monthly income to his beneficiaries for 20 years after he dies and a lump sum of $20,000 at the end of that 20 year period. What type of policy should P purchase?

Family Maintenance Policy

What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies?

Family Maintenance Policy

Which of these needs is satisfied by Adjustable Life insurance?

Insured's need for flexible premiums

Which of these would be considered a Limited-Pay Life policy?

Life Paid-Up at Age 70

At what point does a whole life policy insurance policy endow?

When the cash value equals the death benefit

Variable Whole Life Insurance can be described as

both an insurance and securities product

The Combination of Whole Life and _____ Term insurance is referred to as a Family Income Policy

decreasing

Additional coverage can be added to a Whole Life policy by adding a(n)

decreasing term rider

The amount of coverage on a group credit life policy is limited to

the insured's total loan value

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

Under a Renewable Term policy,

the renewable premium is calculated on the basis of the insured's attained age

A(n)__life policy combines investment choices with a form of term coverage

Variable universal

Which statement about a whole life policy is true?

Cash value may be borrowed against

The investment gains from a Universal Life Policy usually go toward

the cash value

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

Y purchased $100,000 worth of permanent protection on himself and $50,000 worth of 10-year Term coverage for his wife on the same policy. Which of these policies did Y purchase?

A Whole Life Policy with an Other Insured Rider

Which statement is TRUE regarding a variable whole life policy?

A minimum guaranteed Death benefit is provided

All of these insurance products require an agent to have proper FINRA securities registration in order to sell them EXCEPT for

Modified Whole Life

Which of the following information is NOT required to be included in a whole life policy?

Policy's guaranteed dividend table

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

Policyowner

Which is true concerning a Variable Universal Life policy?

Policyowner controls where the investment will go and selects the amount of the premium payment

What advantage does the renewability give to a term life policy

The insured may extend the coverage period.

S, age 40, is looking to buy a Life Insurance policy that will allow for increases or decreases in coverage as his needs change. The policy best suited for S would be

Universal life

A life policy with a death benefit that can fluctuate according to the performance of its underlying investment portfolio is referred to as

Variable Life

Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling?

Variable Life

S owns a life insurance policy with cash values that fluctuate according to the underlying investment performance of common stocks. Which of these policies does S own?

Variable Whole Life

Life insurance immediately creates an estate upon the death of the insured. Which of the following policies is characterized by a guaranteed minimum death benefit?

Variable life

K is looking to purchase Renewable Term insurance. Which of these types of Term insurance may be renewable?

level

What kind of premium does a Whole Life policy have?

level

K purchased a Life insurance policy in 1986 which paid 10% interest in the early years of the policy. Twenty years after the purchase, she received a notice from the insurer stating that the policy will soon terminate unless a much-higher premium is paid because of falling interest rates. This type of policy is known as a(n) _________ life policy.

universal

When is the face amount paid under a Joint Life and Survivor policy?

upon death of the last insured

A term life insurance policy matures

upon the insured's death during the term of the policy

In order to sell a (n)____ Life policy, a producer is required to register with financial Industry Regulatory Authority (FINRA).

variable


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