Life insurance Polices

Premiums must be paid on a monthly basis

All of the following statements about universal life insurance are true, EXCEPT:

Modified premium whole life insurance

All of the following types of life insurance policies allow the policy owner to make changes in coverage without replacing the policy, EXCEPT:

Higher combined premiums

Compared to a joint life insurance policy, separate whole life insurance policies on each of the insureds typically will result in:

In full at the second insured's death

Death benefits under a survivorship life insurance policy covering two insureds are paid:

whole life.

Fixed, level premiums are characteristics of

life paid-up at 65.

If Leo wanted to buy a permanent policy that would require premiums only until he retired at age 65, but would stay in force until age 120, he should purchase

Pay the face amount of the policy

If an insured with an ordinary whole life insurance policy is still living at policy maturity which is age 120, the insurance company will:

coverage amount

John purchases a mortgage protection (decreasing term) life insurance policy. What part of a mortgage protection policy decreases every year?

benefits are paid directly to the beneficiary selected by the insured

What does NOT apply to credit life insurance?

dividends

What element of a policy is NOT guaranteed in a whole life policy?

cash value

What is NOT adjustable by the policy owner in an adjustable whole life policy?

universal life

What life policy has a combination of a protection element of term insurance and cash value that grows on an interest-sensitive basis?

joint life policy

What permanent policy would be most appropriate for a husband and wife with young children who need to provide survivor benefits to raise the children if one of them dies, but who want to keep expenses down?

step rate whole life

What policy starts with a low premium but increases every year, eventually reaching a point at which the premium becomes level and remains there forever?

When a renewable term life insurance policy is renewed, the incontestable period and suicide period start over.

What statement regarding renewable term life insurance is INCORRECT?

Insurer's current rate for other individual applicants

When a terminated employee elects the conversion option under a group life insurance plan, the new policy premium is based on the:

The insured has lifetime protection but doesn't have to pay the premium for their entire life

Which one of the following statements is true if an insured purchases a limited payment whole life insurance policy?