life insurance policies
universal life policies have two types of interest rates? what are they?
guaranteed and current
the policyowner of a whole life policy is also the insured. what age must the insured attain in order to receive the policys face amount ?
age 100
whole life policies provide protection until the insured reaches what age?
age 100
group life insurance policies are written as what type of insurance?
annually renewable term
the death protection component of a universal life policy is expressed as what type of coverage
annually renewable term
in variable universal life insurance, to what policy component does the term "variable" refer?
cash value and death benefit
an individual just borrowed 10,000 on a 5-year note from his bank. the note is due in installments. what type of life insurance policy will be best suited to this situation?
decreasing term
what type of insurance is best suite to cover a mortgage?
decreasing term
if an employee wants to join group life insurance coverage outside of the open enrollment period, what would the employee have to provide
evidence of insurability
when the amount of insurance is increased in an adjustable life policy, what will the insurer require from the insured?
evidence of insurability
what elements of an adjustable life policy can be changed by the policyowner?
the amount and payment period of the premium, the face amount, and the period for protection
a policyowner borrowed a portion of cash value from his whole life policy. if the loan is not repaid how will it affect the death benefit to the beneficiary ?
the amount of the loan will be subtracted from the death benefit
under option b in a universal life policy, what happens to the death benefit?
the death benefit increases each year by the amount of the cash value increases
who owns a group life insurance contract?
the employer / sponsor
In what type of life insurance policies can the policy owner skip premium payments without the policy lapsing ?
universal life
when does an adjustable life policy accumulate cash value ?
when the premiums paid are more than the cost of the life policy
what type of life insurance policy provides permanent protection?
whole life
what is the main advantage of converting from group life to individual coverage ?
evidence of insurability is not required
how is the premium determined in a joint life insurance policy?
premium is based on the average age of the insureds
regarding taxation, how does the cash value of a universal life policy accumulate?
tax deferred
what type of life insurance policy offers pure death protection?
term
a policy states that it will pay a specified face amount if the insured dies during the 20 year premium-paying period and nothing if the death occurs after the 20 year period. what type of policy is this?
20 year level term
what type of premium is charged on a straight life policy?
a level premium for the life of the insured
who is insured under a juvenile life policy?
a minor
what does "level" refer to in level term insurance?
face amount
in annually renewable term policies what is the annual premium based upon?
insureds attained age
a whole life policy that requires the policy owner to only pay premiums for a specified number of years is known as what kind of policy?
limited pay whole life
what type of life insurance policy is life paid-up at age 5?
limited pay whole life
what are the "living benefits" of whole life insurance?
loan values
what universal life option has a gradually increasing cash value and a level death benefit?
option a
what are the death benefit options in universal life policies ?
option a - level death benefit , option b - increasing death benefit
in term policies, what happens to the premium throughout the term of the policy?
the premium remains level
why are policy loans not available on term insurance ?
there is no cash value to borrow against
what is the purpose of establishing the target premium for a universal life policy?
to prevent the policy from lapsing
in a joint life policy when is the death benefit paid ?
upon the first death
what happens to the premium in an annually renewable term life policy ?
premium increases each renewal
under a 20 pay whole life policy, in order for the policy to pay the death to a beneficiary, the premiums must be paid for what period of time?
for 20 years or until the insureds death whichever occurs last.
what are the characteristics of the group that underwriter will consider before issuing a group life policy
groups purpose, size, financial strength and turnover
what happens to the cash value when the whole life policy matures
cash value is paid to the policyowner
what type of life insurance can be changed from a policy with no cash value to one that generates cash value?
convertible term
what policy component must decrease in decreasing term insurance?
face amount
what is the major difference between the most common types of whole life policies ; straight life, limited payment and single premium.
premium payment mode
what type of whole life insurance policy generates immediate cash value?
single premium whole life
between adjustable life and universal life policies, which one provides more flexibility to the policyowner?
universal life
