Life policies

What kind of life insurance starts out as temporary coverage but can be later modified to permanent coverage without evidence of insurability?

Convertible Term

K purchased a $10,000 Life Policy that will pay the face amount to her if she lives to age 65, or to her beneficiary if she dies before age 65. K purchased which of the following types of policies?

Endowment at Age 65

Which of the following combination plans is designed to protect an insured from an unpaid mortgage balance upon premature death?

Joint Life

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

Which of these would be considered a limited-pay life policy?

Life Paid-Up at Age 70

Which type of policy is considered to be overfunded, as stated by IRS guidelines?

Modified Endowment Contract

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

Modified Endowment Contract (MEC)

Which is true concerning a variable universal life policy?

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

Which of the following actions is not possible with a universal life policy?

Premiums may be applied as a credit against income tax

What kind of life insurance product covers children under their parent's policy?

Term rider

Which of the following characteristics is correct about interest sensitive whole life?

There is a flexible premium payment

Which of the following types of policies best identifies one in which the cash value may fluctuate to reflect changing assumptions regarding mortality cost, interest, and expense factors

Universal Life

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

Variable

K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary?

$20,000 death benefit

N is a 40-year old applicant who would like to retire at age 70. He is looking to buy a life insurance policy with level premiums, permanent protection, and be paid-up at retirement. Which of these should N purchase?

30 Pay Life

A whole life insurance policy endows when the

Cash value equals the death benefit

Which statement about a whole life policy is correct?

Cash value may be borrowed against

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

Child term rider

Which of these statements describe a modified endowment contract (mec)?

Exceeds the maximum amount of premium that can be paid into a policy and still have it recognized as a life insurance contract

Term insurance has which of the following characteristics?

Expires at the end of the policy period

What does a Face Amount Plus Cash Value Policy supposed to pay at the insured's death?

Face amount plus the policy's cash value

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

Family Maintenance Policy

What kind of life insurance policy pays a specified monthly income to a beneficiary for 30 years and then pays a lump sum benefit at the end of that 30 years?

Family Maintenance Policy

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

conversion

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

decreasing term rider

A renewable term policy is renewable at the option of the:

insured

What kind of premium does a Whole Life policy have?

level

A Limited-Pay Life policy has

premium payments limited to a specified number of years

Under a Renewable Term policy,

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

A term life insurance policy matures:

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