study

k pays a $20,000 20-year endowment policy for 10 years and dies from a automobile accident. how much will the insurance company pay the beneficiary?

$20,000 death benefit

a potential client, age 40, would like to purchase a whole life policy that will accumulate cash value at a faster rate in the early years of the policy. which of these statements made by the producer would be correct?

20-pay life accumulates cash value faster than straight life

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

stranger-owned life insurance (STOLI) is when a person purchases life insurance only to sell to a(n):

Third-party with no insurable interest

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

which of these is an element of a variable life policy?

a fixed, level premium

if X wants to buy $50,000 worth of permanent protection on his/her spouse and $25,000 worth of 10-year term coverage on X under the same policy, the applicant should purchase:

a whole life policy with an other insured rider

how long does the coverage normally remain on a limited-pay life policy?

age 100

which statement about a whole life policy is correct?

cash value may be borrowed against

which of the following features of a group term life policy enables an individual to leave the group and continue his or her insurance without providing evidence of insurability?

conversion privilege

when a policy owner exchanges a term policy for a whole life policy without providing proof of good health, which of these apply?

conversion provision

what type of life policy has a death benefit that adjusts periodically and is written for a specific period of time?

decreasing term

additional coverage can be added to a whole life policy by adding a:

decreasing term rider

All of these are characteristics of an Adjustable Life policy EXCEPT

face amount can be adjusted using policy dividends

what does a face amount plus cash value policy supposed to pat at the insureds death?

face amount plus the policys cash value

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 would P purchase?

family maintenance policy

what kind of special need would a policy owner require with an adjustable life insurance policy?

flexible premiums

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

joint life

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

all of these insurance products require an agent to have proper FINRA securities registration in order to sell them, except for:

modified whole life

who benefits in investor-originated life insurance (IOLI) when the insured dies?

policy owner

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

premium payments can vary

which statement is correct regarding the premium payment schedule for whole life policies?

premiums are payable throughout the insureds lifetime/coverage lasts until death of the insured

which type of life policy covers two people and pays upon the death of the last insured?

survivorship

a 42 year old executive wants to purchase life insurance that will allow for increases or decreases to coverage as his/her needs change. which of the following policies will best meet this need?

universal life

which of the following policies combines investment choices with a form of term coverage?

variable universal life

which of the following policies is characterized by a flexible premium and death benefit and allows the policy owner control of the investment aspect of the plan?

variable universal life

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

whole life

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

convertible term

a variable insurance policy:

does not guarantee a return on investment accounts