Life insurance policies

A Straight Life policy has what type of premium?

A level annual premium for the life of the insured

Under which of the following circumstances would insurer pay accelerated benefits ?

And insured it is diagnosed with cancer and needs help paying for medical treatment

The accelerated benefits provisions will provide for an early payment of death benefit when the insured

Becomes terminally ill

What limits the amount that a policy owner may borrow for my whole life insurance policy

Cash value

The type of policy that can be change from one that does not accumulate cash value to the one that does is a

Convertible term policy

And individual has just borrow 10,000 from his bank on a five year installment loan requiring monthly payments. What type of life insurance policy would be best suited in this situation?

Decreasing term

Which nonforfeiture option has the highest amount of insurance protection?

Extended term

Which is true about the cash surrender nonforfeiture option?

Funds exceeding the premium paid are taxable as ordinary income.

The policy owner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policy owner choose?

Interest only option

Which of the following is true about the premium on the children's rider in a life insurance policy ?

It remains the same no matter how many children are added to the policy

Which of the following statements is true concerning accidental death rider?

It will pay double or triple the face amount

Which of the following types of policies would be best for individual that is financially limited

Modified life

A rider attached to a life insurance policy that provides coverage on the insurance family members is called the

Other insured rider

The policy owner pays for her life insurance annually. Until now, she has collected a nontaxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this?

Reduction of Premium

What type of life insurance Policy generates immediate cash value

Single Premium

Which of the following will help prevent a universal life policy from lapsing

Target premium

Which of the following statements about group life is correct

The cost of coverage is based on the ratio of men and women in the group.

The policy owner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?

The death benefit can be increased by providing evidence of insurability.

All the following are true statements regarding the accumulation at interest option except

The interest is not taxable since it remains inside the insurance policy

Policy owner of Universal Life policy may skip paying the premium on the policy lapse as long as

The policy contains sufficient to cover the cost of insurance

Which of the following statements is true concerning a irrevocable beneficiaries

They can be changed only with the written consent of that beneficiary.

The waiver of cost of insurance rider is found in what type of insurance?

Universal Life

Which of the following policies would be considered interest sensitive

Universal life

The two types of assignments are

absolute and collateral

A policy owner fails to pay the premium on his whole life after the grace period passes but the policy remains in force. THis is due to the

automatic premium loan added to contracts with a cash value at no additional charge. this is a special type of loan that prevents the unintentional lapse of a policy due to nonpayment of a premium

All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy?

lower