Life Insurance chapter 3
Which of the following types of insurance policies is most commonly used in credit life insurance?
Decreasing term
who could not own group life insurance?
a group needing low cost life insurance
A universal life insurance policy is best described as?
an annually renewable term policy with a cash value account
the least expensive first year premium is found in which of the following policies?
annually renewable term
What policy component decreases in decreasing term insurance?
face amount
At age 30, an applicant wants to start an insurance program, but realizing that his insurance needs will likely change, he wants a policy that can be modified to accommodate those changes as they occur. Which of the following policies would most likely fit his needs?
Adjustable life
Which of the following terms best describe the coverage provided by term policies, as compared to any other form of protection?
Greatest
What are the two components of a universal life policy?
Insurance and cash account
Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die?
Joint Life
an insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?
Limited- pay life
what is not true regarding a decreasing term policy?
The payable premium amount steadily declines throughout the duration of the contract
A straight life policy has what type of premium?
a level annual premium for the life of the insured
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 20 years or until death, whichever occurs first
which of the following statements about group life insurance is correct?
the cost of coverage is based on the ratio of men and women in the group
which of the following are generally not considered when underwriting group insurance?
the insured's medical history
What is called a second to die policy?
survivorship life
