Quiz Types of Policies

A straight life policy has what type of premium?

A level annual premium for the life of the insured.

Which of the following is a feature of a variable annuity?

Benefit payments amounts are not guaranteed.

Which of the following best describes a annually renewable term insurance?

It is level term in surance

Which team it is not true regarding a straight life policy?

Its premium steadily decreases over time, in response to its growing cash value.

Which of the following is Not true regarding Equity Indexed Annuities?

They earn lower interest rates than fixed annuities.

Which is not true regarding a Straight Life Policy?

its premium steadily decreases over time, in response to its growing cash value.

The equity in an equity index annuity is linked to

An index like Standard & Poor's 500.

All other factors being equal, the least expensive 1st year premium payment is found in

Annually Renewable Term

In an annuity, the accumulated money is converted into a stream of income during which time period?

Annuitization Period

If the annuitant dies during the accumulation period, who will receive the annuity benefits?

Beneficiary

Variable Life Insurance is based on what kind of premium?

Level Fixed Variable Life Insurance is a level fixed premium Investment based product.

The term "fixed" in a fixed annuity refers to all of the following Except?

Death benefit

Which of the following is not a term for the period of time during which the any way tent or the beneficiary receives income?

Depreciation.- the "annuitization period" is the time during which accumulated money is covered into an income stream. It is also referred to as the annuity, liquidation or pay-out period.

An annuity owner is funding an annuity that will supplement her retirement. Because she Does not know what effect inflation May have on her retirement dollars, she would like a return that will equal the performance of the standard and course 500 index she would likely purchase a(n)

Equity Indexed Annuity the Interest rates of Equity index annuities are tied to the standard and Poor's index.

Which policy component decreases in decreasing term insurance?

Face amount

A lucky individual won the state lottery, so the state will be sending him a check each month for the nextv25 years. What type of annuity products are they likely to use to provide these benefits?

Immediate annuity

What are the 2 components of a universal policy?

Insurance and cash account

Why is an equity indexed annuity considered to be a fixed annuity?

It has a guaranteed minimum fixed interest rate.

Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the dept Incurred In starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die?

Joint Life- A joint life policy covering 2 lives would be the least expensive because the premiums are based on an average age, in it would pay a death and if it only at the 1st death.

All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy?

Lower

Which of the following is not one of the 3 basic types of coverages that are available, based on how the face amount changes during the policy term?

Renewable; They are 3 basic types term coverage available, based on how the face amount death benefit changes during the policy term. Level, increasing, and decreasing. Regardless of that type of German surance purchased, the premium is level throughout the term of the policy.

Which of the following policies would be classified as a traditional level premium contract?

Straight Life

Which of the following is called a "Second-yo-die" policy?

Survivorship life

Which of the following types of insurance policies would provide the greatest amount of protection for a temporary period during which an insured will have limited financial resources?

Term Insursnce, provides a death benefit only ; cost per $1,000 of coverage is less than other policies that create cash value.

Which of the following is not true regarding that anyone tent?

The annuitant cannot be the same person as the annuity owner. Well they don't have to be, the annuitant and annuity owner are often the same person. That annuitant is the person who receives benefits or payments from the annuity and for whom the annuity is written. Since the annuitant's life expectancy is taken into consideration, the annuitant must be a neutral person.

The annuity owner dies while the annuity is still in the accumulation stage. Which of the following is True?

The beneficiary will receive the greater of the money paid into the annuity or the cash value.

The policyowner of sn adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?

The death benefit can be increased by providing evidence of insurability.

Which of the following features of the indexed call life policy is not fixed? a. Cash value growth

Under the indexed whole life policy, the premium is fixed and death benefit is guaranteed. Cash value is dependent upon the performance of the equity index although a minimum cash value is guaranteed.

And insured owns a life policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?

Universal life

The president of a company is starting an Can you AT and decides that the corporation will be the annual tent. Which of the following statement is true?

a. A corporation can be and anyone tent as long as the beneficiary is aneutral person b. The contract can be issued without an annuitant c. The annuitant must be a natural person. d. A Corporation can be an annuitant as long as it is also the owner. c. The annuitant must be a natural person. Owners of any Annuities Can be individuals or entities like corporations and trusts, but the annuitant must be a natural person, whose life expectancy is taken into consideration for the annuity.

A member purchased $90,000 annuity with a single premium, and began receiving payments 2 months after that. What what type of annuity is it?

a. Flexible b. Deferred c. Variable d. Immediate *d. Immediate, With an immediate annuity, distribution starts within 1 year of purchase.

Which of the following is true regarding the annuity.?

a. It may last for the lifetime of the annuitant b. Dream this period of time the annuity payments girl interest tax deferred c.It is also be for to ask the accumulation period d. It is the period of time during which the a new attempt makes premium payments into the annuity A. It may last for the lifetime of the annuitant

Which of the following is an example of a limited pay life policy?

a. Life Paid-up at Age 65 b. Renewable Term to Age 70 c. Level Term Life d. Straight Life a. Life paid up at Age 65

All other factors being equal, which are the following terms best describes the coverage provided by term policies as compare to any other form of protection? Greatest

a. Longest b. Greatest c. Least d. Most comprehensive *Greatest- Turn policies provide for the greatest amount of coverage for the Lowest premium, as compared to any other form of protection.

An insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured, and matures at the insured's age 100 is called?

a. Modified Endowment Contract (MEC) b. Level term life c. Graded premium whole life d. Single premium whole life * d. Single premium whole life

An individual purchased a $100,000 joint life policy on himself and his wife. Eight years later, he died in an automobile accident. How much will his wife received from the policy?

a. Nothing b. $50,000 c. $100,000 d. $200,000 * c. $100,000

Which of the following is true regarding the premium in term policies? The premium is level

a. Only level term policy has a level premium b. The premium in term policies is not based on the insured's age c. Decreasing term policy will have a decreasing premium d. the premium level *premium is level- Regard less of the type of term and surance purchased, the premium as level throughout the term of policy. Only the amount of the death benefit we change.

Which of the following products require a securities license?

a. Variable annuity b. Fixed annuity c. Equity Indexed annuity d. Deferred annuity a. Variable annuity Is considered to be a security and is regulated by the securities exchange commission SEC in addition to state insurance regulations. For that recent, a person must hold a securities license in addition to in life agent's license in order to sell variable Annuities.