Types of Life Insurance Policies-Life
Which of the following are types of whole life insurance?
-single premium -straight life -limited payment
Cash Value
a policys savings element or living benefit
Suitability
a requirement to determine if an insurance product is appropiate for a customer
Endow
the cash value of a whole life policy has reached the contractual face amount
Attained Age
the insureds age at the time the policy is issued or renewed
Which of the following statements is correct regarding a whole life policy?
the policyowner is entitled to policy loans
Level Premium
the premium that does not change throughout the life of a policy
Deferred
withheld or postponed until a specificed time or event in the future
Variable Life Insurance
contracts in which the cash values accumulate based upon a specific portfolio of stocks without guarantees of performance
Securities
financial instruments that may trade for value (for example stocks, bond, options)
Qualified Plan
a retirement plan that meets IRS guidelines for receiving favorable tax treatment
Fixed Life Insurance
contracts that offer guaranteed minimum or fixed benefits
Your customer doesn't mind paying a higher premium as long as he gets a life insurance product that would allow for a faster growth of the cash value. What kind of policy would you recommend?
an endowment policy
Nonforfeiture Values
benefits in a life insurance policy that the policyowner cannot lose even if the policy is surrendered or lapses
Liquidation of an estate
converting a persons net worth into a cash flow
An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?
decreasing term
An insured purchased a Life Insurance policy. The agent told him that depending upon the company's investment and expense factors, the cash values could change from those shown in the policy at issue time. The policy is a/an
interest-sensitive whole life
Face Amount
the amount of benefit stated in the life insurance policy
What kind of policy allows withdrawls or partial surrenders?
universal life
Which of the following types of policies allows the policyowner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount?
universal life
Which of the following is INCORRECT regarding a $100,000 20-year level term policy?
at the end of 20 years the policys cash value will equal $100,000
Policy Maturity
in life policies, the time when the face value is paid out
A domestic insurer issuing variable contracts must establish one or more
separate accounts
Which of the following is NOT true regarding Equity Indexed Annuities?
they earn lower interest rates than fixed annuities
