Insurance Pt. 4! Chpt 1 Exam Pt. 2

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

10 year convertible team

What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies?

family maintenance Policy

P is looking to purchase a life insurance policy that will pay a stated monthly income to his beneficiaries for 20 years after he dies and a lump sum of $20,000 at the end of that 20 year period. What type of policy should purchase ?

family maintenance policy

Who has the option to renew a Renewable Term policy ?

insured

What type of life policy covers 2 lives and pays the face amount after the first one dies?

joint life policy

An architecture firm would stand to lose a lot of money in the event of the death of its project manager. Which type of policy should the firm purchase on its project manager ?

key person insurance

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

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

modified endowment contract (MEC)

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

All of these statements about Equity Indexed Life Insurance are correct , EXCEPT:

The premiums can be lowered or raised, based on investment performance

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

What kind of life insurance starts out as temporary coverage but can be later modified to permanent coverage without evidence of insurability ?

convertible Term

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 provision

Which of the following information is NOT required to be included in a Whole Life policy?

policy's guaranteed dividend table

Which of the following types of permanent life insurance policies offers the highest initial cash value?

single premium

What type of life policy covers two people and pays upon the death of the last insured ?

survivorship

What type of life insurance gives the greatest amount of coverage for a limited period of time ?

term life

K purchased a Life insurance policy in 1986 which paid 10% interest in the early years of the policy. Twenty years after the purchase, she received a notice from the insurer stating that the policy will soon terminate unless a much- higher premium is paid because of falling interest rates. This type of policy is known as a(n)________life policy .

universal

A n) ________ _________Life policy combines investment choices with a form of Term coverage

variable universal