Instructional review-life policies
Additional coverage can be added to a Whole Life policy by adding a(n)
Decreasing term rider
A Limited-Pay Life policy has
*premium payments limited to a specified number of years (In a Limited-Pay Life policy, premium payments are limited to a specified number of years.
Which of the following combination plans is designed to protect an insured from an unpaid mortgage balance upon premature death?
Joint Life
D needs life insurance that provides coverage for only a limited amount of time while also paying the lowest possible premium. What kind of policy is needed?
Level term
All of these insurance products require an agent to have proper FINRA securities registration in order to sell them EXCEPT for
Modified Whole Life
A father who dies within three years after purchasing a life insurance policy on his infant daughter can have the policy premiums waved under which provision?
Payor provision
Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies?
Policyowner
Which of the following actions is not possible with a universal life policy?
Premiums may be applied as a credit against income tax
What type of life insurance incorporates flexible premiums and an adjustable death benefit?
Universal Life
The investment gains from a universal life policy usually go toward
cash value
A variable insurance policy
does not guarantee a return on its investment accounts
All of these are characteristics of an Adjustable Life policy EXCEPT
face amount can be adjusted using policy dividends
What kind of life policy either pays the face value upon the death of the insured or when the insured reaches age 100?
whole life
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
When is the face amount of a Whole Life policy paid?
When the insured dies or at the policy's maturity date, whichever happens first
With term insurance has which of the following characteristics
Expires at the end of the policy period
A whole life insurance policy endows when the
Cash value equals the death benefit
What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time?
Decreasing term
T would like to be assured $10,000 is available in 10 years to replace a roof on his house. What kind of $10,000 policy should T purchase?
Ten-Year Endowment
What type of life insurance gives the greatest amount of coverage for a limited period of time?
Term life
All of these statements about Equity Indexed Life Insurance are correct EXCEPT
The premiums can be lowered or raised, based on investment performance
Which of the following characteristics is correct about interest sensitive whole life?
There is a flexible premium payment
Which of the following policies combines investment choices with a form of term coverage?
Variable Universal Life
Which type of life policy contains a monthly mortality charge as well as self-directed investment choices?
Variable Universal Life
