Set 1 Assignment 6 - Life Insurance Policies Practice Exam

Mr. Shulkin owns a 30-pay life policy that he purchased at the age of 30. The cash value will equal the face amount of the policy when he reaches the age of: A) 60 B) 65 C) 70 D) 100

D) 100

On term life insurance, the re-entry option is contingent upon: A) Paying an increased premium B) Being able to pass physical exam C) Buying another policy D) Adding an accidental death benefit rider

B) Being able to pass a physical exam

Which of the following is an example of a Limited-Pay life policy: A) Whole life B) Life Paid-Up at age 65 C) Renewable term to age 70 D) Endowment maturing at age 65

B) Life Paid-UP at age 65

The insured can receive the face amount of an Endowment policy if they are still living when the policy's: A) Cash value equals the face amount B) Cash value equals the premiums paid C) Cash value exceeds the premiums paid D) Premiums paid exceed the face amount

A) Cash value equals the face amount

All of the following are true about the cash value in life insurance policies EXCEPT: A) Term insurance has no cash value B) The cash value in a Whole life policy is based upon the level premium concept C) On limited pay Whole Life, the cash value will equal the face amount at the end of the premium paying period D) Single premium Whole Life policies have an immediate cash value.

C) On limited pay Whole Life, the cash value will equal the face amount at the end of the premium paying period

Universal Life policies have all of the following, EXCEPT: A) A choice of a fixed or level premium B) Flexibility in premium payments C) The cash value invested in a separate account D) A minimum guaranteed interest rate on the cash value

C) The cash value invested in a separate account

A life insurance policy sold to each spouse, rather than a joint life insurance policy sold to cover both spouses, would have all EXCEPT: A) Two separate premiums B) A combined higher premium C) Coverage only for whichever spouse dies first D) Coverage for both spouses whenever either dies

C: Coverage only for whichever spouse dies first

Which of the following best describes the normal Conversion benefit available to terminated employees under a Group Life Insurance policy? A) The employee may convert to an individual Term policy within 31 days by submitting evidence of insurability B) The employee may convert to an individual Permanent Life policy withing 31 days by submitting evidence of insurability C) The employee may convert to an individual Term policy within 31 days without submitting evidence3 of insurability. D) The employee may convert to an individual Permanent Life policy within 31 days without submitting evidence of insurability

D) The employee may convert to an individual Permanent Life policy withing 31 days without submitting evidence of insurability

The plan of Permanent Life insurance that offers cash value at the lowest premium is: A) A Whole Life policy B) A Limited-Pay Life policy C) A Term Policy D) An Annuity contract

A) A Whole Life Policy

All are true about a Limited Pay Whole Life policy, EXCEPT: A) The cash value will be paid to the policy owner upon cash surrender B) The face amount of the policy will be paid to the insured at policy maturity C) The policy will cover the insured until death or age 100, whichever occurs first D) The policy will reach maturity at the end of the premium paying period

D) The policy will read maturity at the end of the premium paying period