ins.2) Life Products
How long will a life annuity with a 15 year period certain pay?
...
what are the death benefit options on whole life policy
A) level death benefit B) increasing death benefit
what are the two phases of annuity?
Accumulation and Annuitization (Pay-in and Pay-out)
Who receives income payments from an annuity?
Annuitant
what is the main reason for purchasing an annuity
To provide income that the annuitant cannot outlive
when would a 20 pay whole life policy endow
When the insured reaches age 100
what type of premium is charged on a straight life policy
a level premium for the life of the insured
what type of licenses are required to sell variable annuities
a life insurance license AND a securities license
in flexible premium payment annuities, the term flexible refers to what
amount of premium
in flexible premium payment annuities, the term flexible refers to what?
amount of premium
The death protection component of a universal life policy is expressed as what type of coverage?
annually renewable term
the death protection component of a universal life policy is expressed as what type of coverage
annually renewable term
Whose life expectancy is taken into consideration in an annuity contract?
annuitant
if there is no named beneficiary for the annuity benefits, to which entity will the benefits be paid?
annuitants estate
in an annuity, the accumulated money is converted into a stream of income during which phase?
annuitization period
If the annuitant dies during the accumulation period, who will receive the annuity benefits?
beneficiary
if the annuitant dies during the accumulation period, who will receive the death annuity benefit?
beneficiary
what happens to the cash value when a whole life insurance policy matures
cash value is paid to policy owner
what happens to the cash value when a whole life policy matures
cash value is paid to the policy owner
an individual has just borrowed 10,000 on a 5 year note from his bank. The note is due in installments, what type of life insurance policy would be best suited to this situation
decreasing term
what type of life insurance is best suited to cover a mortgage?
decreasing term
if the annuitant dies before the annuitization period, what will the beneficiary receive
either the amount paid into the annuity or the cash value, whichever is greater
what type of annuity credits its interest based upon an index such as S&P 500 index
equity indexed annuity
What policy component must decrease in decreasing term insurance?
face amount
what does the term "level" refer in to level term insurance
face amount
what policy component must decrease in decreasing term insurance
face amt
an annuity purchased with multiple payments that begin income payments after one year from the moment of purchase is known as what type of annuity
flexibile premium deffered annuity
under a 20 pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid for what time period?
for 20 years or until the insured/s death, whichever occurs first
under a 20-year whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid for what time period?
for the first 20 years or until the insured's death, whichever occurs first
how long will a life annuity with a 15 year period certain pay?
for the life of the annuitant unless he/she dies within the first 15 years of the annuitization period, then the payments will last for 15 years
what are two classifications of annuities according to the time when the annuity payments begin?
immediate and deffered
what type of annuity can be purchased with a single premium
immediate annuity
what type of annuity can be purchased with a single premium?
immediate annuity
If an annuity provides a set amount of income for two or more persons with the income ceasing upon the first death, what type of annuity is that?
joint life annuity
if an annuity provides a set amount of income for two or more persons with the income ceasing upon the first death, what type of annuity is that
joint life annuity
mortality tables are used by insurance companies to predict what?
life expectancy and death rates for specific groups of individuals
what annuity settlement option provides income payments for the duration of his or her life, and also guarantees payments for a specified number of years
life income with period certain
what annuity settlement option provides income payments to the annuitant of his or her life, and also guarantees payment for a specified number of years?
life income with period certain
what type of life insurance policy is Life Paid up at age 65
limited pay whole life
how soon can income payments begin in an immediate annuity?
no later than 1 year after the annuity purchase
with a single premium deferred annuity, when will the annuity payments become available?
no sooner than 1 year after the annuity purchase
can a business or a corporatin be an annuitant?
no, an annuitant must always be a natural person
what universal life option has gradually increasing cash value and a level death benefit
option A
what type of life insurance offers an applicant a cash value element
permanent insurance (usually whole life)
what type of life insurance offers an applicants cash value?
permanent insurance (usually whole life)
what elements of an adjustable life policy can be changed by policyowners
the amount and payment period of the premium, the face amount, and the period for protection
regarding annuity payments, what is the difference between the annuitant and the beneficiary of an annuity?
the annuitant payments from the annuity during the annuitization period; the beneficiary receives benefits after the annuitants death.
Regarding annuity payments, what is the difference between the annuitant and the beneficiary of an annuity?
the annuitant receives payments from the annuity during the annuitization period; the beneficiary receives benefits after the annuitants death
in annually renewable term policies, what is the annual premium based upon
the insured attained age
in annually renewable term policies, what is the annual premium based upon?
the insured's attained age
who bears the investment risk of a fixed annuity
the insurer
what is the difference between a single premium and a flexible premium payment options in a deferred annuity?
the number of payments that purchase the annuity
who is entitled to the cash value of a life insurance policy
the policyowner
How is the premium determined in a joint life insurance policy?
the premium is based on the avg age of the insureds.
what happens to the premium in an annually renewable life insurance policy?
the premium will increase with each renewal
Why are policy loans not available on term insurance?
there is no cash value to borrow against
under Option B in a universal life policy, what happens to the death benefit?
under option B, the death benefit increases each year by the amount of cash value increases
in what type of life insurance policies can the policyowner skip premium payments without the policy lapsing?
universal life
in a joint life policy, when is death benefit paid?
upon first death
what type of annuity requires an agent to have a securities license?
variable annuity
when does an adjustable life accumulate cash value?
when the premiums paid are more than the cost of the policy
when does an adjustable life policy accumulate with cash?
when the premiums paid are more than the cost of the policy
what type of life insurance policy provides permanent protection?
whole life
what type of insurance would perform the function of cash accumulation?
whole life insurance