Life Insurance Policies Quiz

Which of the following best describes annually renewable term insurance?

DIt is level term insurance.

All of the following statements are correct regarding Credit Life Insurance EXCEPT

Benefits are paid to the borrower's beneficiary.

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

Convertible Term Policy.

Which of the following is TRUE about credit life insurance?

Creditor is the policyowner.

All of the following entities regulate variable life policies EXCEPT

The Guaranty Association.

In a group life insurance policy, the employer may select all of the following EXCEPT

The beneficiary.

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?

Universal life

To sell variable life insurance policies, an agent must receive all of the following EXCEPT

SEC registration.

A Universal Life Insurance policy is best described as a/an

Annually Renewable Term policy with a cash value account.

Which of the following is an example of a limited-pay life policy?

Life Paid-up at Age 65

An employee has group life insurance through her employer. After 5 years, she decides to leave the company and work independently. How can she obtain an individual policy?

She can convert her group policy to an individual policy without proof of insurability within 31 days of leaving the group plan.

An insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured, and matures at the insured's age 100 is called

Single premium whole life.

Which of the following is called a "second-to-die" policy?

Survivorship life

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.

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