life policies
K is looking to purchase Renewable Term insurance. Which of these types of Term insurance may be renewable?
Level
Q is looking to buy life insurance policy that will provide the greatest amount of protection for a temporary time period. which of these policies should Q purchase?
Term life
the most important factor to consider when determining whether to convert term insurance at the insurance at the insured's attained age or the insured's original age is:
The cost
All of these about equity indexed life insurance are correct, EXCEPT:
The premiums can be lowered or raised, based on investment performance.
In order to sell an _________ life policy, a producer is required to register with the financial industry regulation authority (FINRA).
Variable
which of these is an element of a variable life policy?
a fixed, level premium
A life policy that contains a monthly mortality charge as well as self- directed investment choices is called a(n)
a variable universal life policy
Under an interest sensitive whole life policy
cash values are determined by interest rates
A company that owes a life insurance policy on one of its key employees may do all of the following EXCEPT.
change the policy's interest rate
when the policy owner exchanges a term policy for a whole life policy without providing proof of good health, which of these apply?
conversion period
F needs life insurance that provides coverage for only a limited amount of time with a death benefit that changes regularly according to a schedule. What kind of policy is needed?
decreasing term policy
P owes a $25,000 life policy that pays the face amount to him if he lives to age 70. or to his beneficiary if he dies before the age 70. what kind of policy does P own?
endowment at age 70
S is close to retiring and would like to purchase a policy that will yield greater gains than bonds, but will still protect the principal with a minimum level or risk. Which product would S be advised to purchase?
equity index insurance
A universal life policy is sometimes referred to as an unbundled life policy because the owner can see the interest earned, cost of insurance, and the......
expense charges
All of these are characteristics of an Adjustable Life policy EXCEPT
face amount can be adjusted using policy dividends
P is looking to purchase a life insurance policy that will pay a stated monthly income to his beneficiaries for 20 years after he dies and a lump of sum $20,000 at the end of that 20 year period. what type of policy should P purchase?
family maintenance policy
what kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies?
family maintenance policy
Which of these needs is satisfied by Adjustable Life insurance?
insured's needs for flexible premiums
which of these should be considered a limited-pay life policy?
life paid-up at age 70
Which type of policy is considered to be overfunded, as stated by IRS guidelines?
modified endowment contract
Which of these life products is NOT considered interest-sensitive?
modified whole life
Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling?
variable life
a life policy with a death benefit and a cash value that can fluctuate according to the performance of its underlying investment portfolio is referred to as
variable life
which of the following policies is characterised by a flexible premium and death benefit and allows the policyowner to control of the investment aspect of the plan?
variable universal life
S owns a life insurance policy with cash values that fluctuate according to the underlying investment performance of common stocks. Which of these policies does S own?
variable whole life
a life insurance policy that provides a policyowner with cash value along with a level face amount is called:
whole life
If a 10-Year Term Life policy contains a Renewability provision, the policy will renew
without evidence of insurability
A 15- year mortgage is best protected by what kind of life policy?
A 15-year decreasing term
Which statement is TRUE regarding a variable whole life policy?
A minimum guaranteed death benefit is provided
which statement about a whole life policy is true?
Cash value may be borrowed against
whole life insurance policies are contractually guaranteed to provide each of the following, EXCEPT:
Partial withdrawal features beyond a surrender charge period.
k buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6 and stays level thereafter, all the while the death benefit remains the same. what kind of policy is this?
modified whole life
A limited-pay life policy has:
premium payments limited to a specified number of years
which of these characteristics is consistent with straight life policy?
premiums are payable for as long as
K is shopping for a permanent life insurance policy that will offer her the MOST protection per dollar of annual premium. Which of these policies best fits her needs?
straight life
what type of life policy covers and pays upon the death of the last insured
survivorship
Under a Graded Premium Whole Life policy,
the premium increases each year during the early years of the contract and remains the same after that time
Under a Renewable Term policy,
the renewable premium is calculated on the basis of the insured's attained age
which of the following is considered an element of a variable life policy?
underlying equity investment
what type of life insurance incorporates flexible premiums and an adjustable death benefit?
universal life
