Quiz 3-1

Jan 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

Which of these is an element of a Variable Life policy?

A fixed, level premium

Credit life insurance is typically issued with which of the following types of coverage?

Decreasing Term

A father who dies within 3 years after purchasing a life insurance policy on his infant daughter can have the policy premiums waived under which provision?

Payor provision

A life policy that contains a monthly mortality charge as well as self-directed investment choices is called a(n)

Variable Universal Life policy

Variable Whole Life Insurance can be described as:

both an insurance and securities product

A Universal Life policy is sometimes referred to as an unbundled Life Policy because the owner can see the interest earned, expense charges, and the

cost of insurance

Which of the following actions require a policyowner to provide proof of insurability in an Adjustable Life policy?

increase face amount

A term life insurance policy matures:

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

Who has the option to renew a Renewable Term policy?

Insured

Which of these needs is satisfied by Adjustable Life insurance?

Insured's need for flexible premiums

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

Key Person insurance

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 these characteristics is consistent with a Straight Life policy?

Premiums are payable for as long as there is insurance coverage in force

Which of the following types of permanent life insurance policies offers the highest initial cash value?

Single premium

Whole Life insurance is sometimes referred to as "Straight Life". What does the word "Straight" indicate when using this phrase?

The duration of premium payments

How does a typical Variable Life Policy investment account grow?

Through mutual funds, stocks, bonds

Sam, 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 Sam would be

Universal Life

A Universal Life policy is sometimes referred to as an unbundles Life Policy because the owner can see the interest earned, cost of insurance, and the

expense charges

Under a Renewable Term policy,

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