3- Life Insurance Policies- Provisions, Options, and Riders

Which of the following types of Term Life policies most likely contains a Renewability feature?

10 year convertible term

Which of the following types of policies pays a benefit if the insured goes blind?

AD&D

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

Conversion provision

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

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

Decreasing term

K is shopping for a permanent life insurance policy that will offer her the most protection per dollar of annual premium. Which of these policies best fits her needs?

Straight life

What type of life insurance incorporates flexible premiums and an adjustable death benefit?

Universal Life

Which of the following life insurance policies combine term insurance with an investment element?

Universal Life

Which of these life insurance allows the policyowner to level premiums and to also choose from a selection of investment options?

Variable Life

A(n) _________ __________________ Life policy combines investment choices with a form of Term coverage

Variable Universal

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

Variable Universal Life Policy

If a 10-Year Term Life policy contains a Renewability provision, the policy will renew

Without evidence of insurability

Variable Whole Life Insurance can be described as

both an insurance and securities product.

Variable Life products require a producer to

hold a Life Insurance license and a Securities license

S is close to retiring and would like to purchase a policy that will yield greater gains than bonds, but will still protect the principal with a minimum level or risk. Which product would S be advised to purchase?

Equity index insurance

Which of these statements describe a Modified

Exceeds the maximum amount of premium that can be paid into a policy and still have it recognized as a life insurance contract.

Who has the option to renew a renewable term policy?

Insured

What type of policy is considered to be overfunded, as stated by IRS guidelines?

Modified Endowment Contract

When a life insurance policy exceeds certain IRS table values, the result would create which of the following?

Modified endowment contract (MEC)

Which of these characteristics is consistent with a Straight Life policy?

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