NC Life Insurance 6

Universal life insurance is different from whole life in a couple areas. One important difference potential insureds should be aware of is that with universal life, the cash value from investments grows at what rate?

At a variable rate that is adjusted monthly

Interest-sensitive whole life insurance is appropriate life insurance coverage for which group of individuals?

Potential insureds requiring permanent insurance and desire a fixed premium

Ralph obtained a very basic life insurance policy from his local agent. His policy will expire on a set date, and his benefits from the policy are determined at the date he purchased coverage. What type of life insurance policy did Ralph purchase?

Term life

What will happen if an insured decides he or she no longer would like to make payments on a traditional whole life policy and ask the carrier to cancel the policy?

The insured would collect part of the premium already paid to the carrier

Which type of life insurance policy has the key advantage of being able to take premium dollars and invest it in multiple types of investment options?

Variable life insurance

Traditional whole life policies are a type of insurance policy that will provide coverage only under what circumstance?

It is for the entire life of the insured

Adjustable life insurance policies differ from other life insurance policies in what way?

Adjustable life insurance policies do not require the insured to purchase additional coverage or cancel when they have a life change

Tyler is a newly married 33-year-old who is talking to an agent about purchasing a life insurance policy for him and his wife. Tyler is nervous to commit to a policy as he is young and unsure of how much he can afford to pay in premiums in case of a job or life change. What type of policy may Tyler's agent suggest to help ease Tyler's fear of committing to a policy for life?

An adjustable life insurance policy

Margaret is 23 years of age and new to the workforce. She was approached by her human resources department to purchase life insurance. Margaret thought at her age she would just get a basic policy and wanted to pay the lowest amount possible for coverage. She also, however, knew that she would want to up her coverage as she got older. What would be a good option for Margaret?

Annual renewable term

Tamara was tight with money one month due to unforeseen bills. She was worried she would not be able to pay her life insurance premium that month and risk coverage being cancelled. Tamara could use the interest gained on the policy to pay this premium due if she had what type of life insurance?

Universal life insurance

Richard is 58 years of age and is looking for a new life insurance policy. Richard's future plans are to retire in 3 years and downsize his house to better suit his needs as his children are all out of house. What type of policy may Richard be interested in purchasing?

Decreasing term insurance

Which type of life insurance policy is typically less expensive than a variable policy? This type of life insurance policy also offers the benefit of higher security against a decline in stock market values.

Equity-indexed universal life policy

Mary and John are a newly married couple who are meeting with an agent to purchase a life insurance policy. The couple wants to pay a low premium for now because they are young with no dependents. Mary and John, however, plan to one day have children and want a policy whose coverage will grow as their lives change. What policy may Mary and John's agent suggest for their needs?

Increasing term life insurance

Sara was researching life insurance policies to see which was best to fit her needs. She was interested in a premium that would not change over time but also wanted to avoid the hassle of having to search for a new policy each year. What type of policy would fit Sara's needs?

Level premium term

There are several types of life insurance products available to insureds. Which type of policy should an insured obtain if he or she does not want to continue making premium payments after a set number of years?

Limited-pay life insurance