Basic principles of life incurance and annuities FLA 2.15
which of the following types of term life policies most likely contains a renewability feature?
10 year convertible term
G purchased a Family Income policy at age 40, The policy has a 20-year rider period. If G were to die at age 50, how long would G's family receive an income?
10 years
A 15 year mortgage is best protected by what kind of life policy
15 decreasing term
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 is true.
20-pay life accumulates cash value faster than straight life
What type of life policy has a 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(n)
Decreasing term rider
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
What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies?
Family maintenance policy
What kind of life insurance policy pays a specified monthly income to a beneficiary for 30 years and then pays a lump sum benefit at the end of that 30 years?
Family maintenance policy
Life insurance that covers an insureds whole life with level premiums paid over a limited time is called:
Limited-pay life
What type of life insurance are credit policies issued as?
Term
What kind of life insurance product covers children under their parent's policy?
Term rider
The investment gains from a universal life policy usually go toward?
The cash value
What advantage does the renewability feature give to term policy?
The insured may extend the coverage period
All of these statements about Equity Indexed Life Insurance are correct EXCEPT
The premiums can be lowered or raised
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 and with an investment element?
Universal life
When is the face amount paid under a Joint Life and Survivor policy?
Upon death of the last insured
At what point does a whole life policy Endow?
When the cash value equals the death benefit
what kind of life policy either pays the face value upon the death of the insured or when the insured reaches the age of 100
Whole life
which of the following policies is charictatized by a flexible premium and death benefit and allows the policyowner control of the investment aspect of the plan
adjustable Life
A variable insurance policy:
does not guarantee a return on its investment accounts
Credit life insurance is:
issued in an amount not to exceed the amount of the loan
In order to sell a(n) Life policy, a producer is required to register with the financial industry regulatory authority
variable
Life insurance immediately creates an estate upon the death of an insured. Which of the following policies is characterized by a guaranteed minimum death benefit?
variable Life
A(N) _________ ___________ Life policy combines investment choices with a form of therm 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
S owns a life insurance policy with cash values that fluctuate according to the underlying investment performance of common stocks. Which of these policies does S own?
variable whole life
Y purchased $100,000 worth of permanent protection on himself and $50,000 worth of 10-year Term coverage for his wife on the same policy. Which of these policies did Y purchase?
whole life policy with an other insured rider
If a 10-Year Term Life policy contains a Renewability provision, the policy will renew
without evidence of insurability
Which statement is TRUE regarding a variable whole life policy?
A minimum guaranteed death benefit is provided
Which of the following types of policies pays a benefit if the inured goes blind?
AD&D
S is covered by a whole life policy. Which insurance product can cover his children?
CHILD term rider
which statement about a whole life policy is true?
Cash value may be borrowed against
a company that owns a life insurance policy on one of its key employees may do all of the following EXCEPT
Change the policy's interest rate
Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it?
Decre
the combination of whole life and __________ term insurance is reffered to as a family income policy
Decreasing
which of these life products is NOT considered interest-sensitive?
Modified Whole Life
Which type of policy is considered to be overfunded, as stated by IRS guidelines?
Modified endowment contract
J is issued a Life Insurance policy with a death benefit of $100,000. She pays $600 per year in premium for the first 5 years. The premium then increases to $900 per year in the sixth year, and remains level thereafter. The policy's death benefit also remains at $100,000. Which type of Life Insurance policy is this?
Modified premium Life
A Father who dies within 3 years after purchasing a life insurance policy on his infant daughter can have the policy premiums waived under which provision?
Payor Provison
Which is true concerning a Variable Universal Life policy?
policyowner controls where the investments go and selects the amount of the premium payment
A limited-pay life policy has
premium payments limited to a specified number of years
which statement is correct regarding the premium payment schedule for whole life policy's?
premiums are payable throughout the insureds lifetime coverage lasts until death of the insured
What type of life policy covers two people and pays upon the death of the last insured
survivorship
A term life insurance policy matures
upon the insured's death during the term of the policy
