Life Ins - Practice Questions

What type of premium do both Universal and Variable Universal Life polices have?

Flexible

Which of the following best describes a pure life annuity settlement option?

Pure life following best describes a pure life annuity settlement option.

Which of the following is TRUE regarding variable annuities?

The annuitant assumes the risks on investments

Which of the following is a short term annuity that limits the amounts paid to a specific fixed period or until a specific fixed amount is liquidated.

Annuity Certain

Which of the following is NOT true regarding an annuity certain?

Benefits stop at the annuitant's death.

An individual has just borrowed $10,000 from his bank on a 5 -year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?

Decreasing Term

What are the two components of a universal policy?

Insurance and cash account

A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?

Level Term

Which of the following is an example of limited- pay life policy?

Life Paid-up at Age 65