Life Insurance Policies

30 days

A flexible premium universal life insurance policy must provide a grace period of 10 days 30 days 60 days 90 days

Greatest

All other factors being equal, which of the following terms best describe the coverage provided by term policies, as compared to any other form of protection? Longest Greatest Least Most comprehensive

Limited-pay 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? Adjustable life Graded premium life Limited-pay life Variable life

Face amount

What does "level" refer to in level term insurance? Premium Cash Value Interest Rate Face Amount

Option A

Which Universal Life option has a gradually increasing cash value and a level death benefit? Option B Option A Juvenile life Term insurance

Limited pay whole life

Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client? Increasing term Limited pay whole life Interest sensitive whole life Life annuity with period certain

It will increase because the insured will be 5 years older than when the policy was originally purchased

An insured buys a 5-year level premium term policy with a face amount of $10,000. The policy also contains renewability and convertability options. When the insured renews the policy in 5 years, what will happen to the premium? It will increase each year during the next 5 years as the face amount increases each year It will increase because the insured will be 5 years older than when the policy was originally purchased It will remain the same for the new 5-year term It will decrease for the new 5-year term since the insured is now a lesser risk to the company

Gradually increases each year by the amount that the cash value increases

The death benefit under the Universal Life Option B Remains level Gradually increases each year by the amount that the cash value increases Decreases by the amount that the cash value increases Increases for the first few years of the policy, and then levels off

The performance of the policy portfolio

Which of the following determines the cash value of a variable life policy? The premium mode the performance of the policy portfolio the company's general account the policy's guarantees

Creditor requiring that a debtor buys insurance from a certain insurer

Which of the following is NOT allowed in credit life insurance Creditor having a collateral assignment on the policy Creditor requiring that a debtor has a life insurance Creditor becoming a policy beneficiary Creditor requiring that a debtor buys insurance from a certain insurer

Annually

A policyowner of a Universal life insurance policy must receive a policy status report from the insurer at least Monthly Semi-annually Annually Every 5 years

Insures the life of a debtor

Credit life insurance Has a maximum term for insurance of 20 years Insures the life of a debtor Is purchased on an installment basis Insures the life of a creditor

15 days

If a statement of policy information is not furnished to the applicant at the time of application, how soon must the form be delivered to the applicant? 10 days 15 days 30 days 45 days

Be level thereafter

Graded-premium whole life policy premiums are typically lower initially, but gradually increase for a period of 5 to 10 years. After the period of increase the premiums will Be level thereafter Continue to increase return to the initial premium amount Decrease again

Universal Life

Which of the following types of policies allows the policyowner to skip premium payments, provide that there is enough cash value in the policy to cover the premium amount? Adjustable life UniversalLife Flexible life Variable life

Single premium whole life

An insurance policy that only requires a payment of premiums at its inception, provides insurance protection for the life of the insured, and matures at the insured's age 100 is called Level term life Graded premium whole life Single premium whole life Modified Endowment Contract (MEC)

The insured may choose to convert to term or permanent individual coverage

An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT? The insured would not need to prove insurability for a conversion policy The insured may convert coverage to an individual policy within 31 days The premium for individual coverage will be based upon the insured's attained age The insured may choose to convert to term or permanent individual coverage

Its premium steadily decreases over time, in response to its growing cash value

Which statement is NOT true regarding a Straight Life policy? It usually develops cash value by the end of the third policy year It has the lowest annual premium of the three types of Whole Life policies Its premium steadily decreases over time, in response to its growing cash value The face value of the policy is paid to the insured at age 100

Universal Life

Which of the following types of policies allows the policyowner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount? Adjustable life Universal life Flexible life Variable life

The policy contains sufficient cash value to cover the cost if insurance

The policyowner of a Universal Life policy may skip the premium and the policy will not lapse as long as The policy contains sufficient cash value to cover the cost if insurance The previous premium payments were high enough to create an excess of premium The policyowner cannot skip premiums without the policy lapsing The next month's premium is sufficient to cover both the current premium amount and the skipped amount