Chapter 2 quiz: Types of life policies
which of the following is incorrect regarding a $100,000 20-year level term policy?
At the end of 20 years, the policy's cash value will equal $100,000
The type of policy that can be changed from one that does not accumulate cash value to the one that does is a
Convertible term policy
Which policy component decreases in decreasing term insurance?
Face amount
which of the following types pf policies allows the policy-owner to skip premium payments provided that there is enough cash value in the policy to cover the premium amount?
Universal life
what type of premium do both universal life and variable universal life policies have ?
flexible
which of the following is not true regarding the annuitant?
the annuitant cannot be the same person as the annuity owner.
All of the following statements about equity index annuities are correct except
the annuitant receives a fixed amount of return.
If the annuitant dies during the accumulation period, who will receive the annuity benefits?
the beneficiary
An insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured, and natures at the insured's age 100 is called
Single premium whole life
The LEAST expensive first-year premium is found in which of the following polices.
annually renewable term
Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be
adjusted to the Insured's age at the time of renewal
A return premium term life policy is written as what type of term coverage?
increasing
What is the purpose of establishing the target premium for a universal life policy?
tp keep the policy In force
all the following are true regarding the convertibility option under a term life insurance policy except
upon conversion, the death benefit of the permanent policy will be reduced by 50%
An insured purchased a Life Insurance policy. The agent told him that depending upon the company's investments 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