Permanent Life Insurance
A Universal Life insurance policy has two types of interest rates that are called A. Guaranteed and current B. Option A and Option B C. Fixed and Variable D. Minimum and Target
A. Guaranteed and current
Which of the following determines the cash value of a variable life policy? A. The performance of the policy portfolio B. The company's general account C. The policy's guarantees D. The premium mode
A. The performance of the policy portfolio
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 A. Until the policyowner's age 100, when the policy matures B. For 20 years or until death, whichever occurs first C. Until the policyowner reaches age 65 D. For at least 20 years
B. For 20 years or until death, whichever occurs first
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? A. Graded Premium Life B. Limited-pay Life C. Variable Life D. Adjustable Life
B. Limited-pay 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? A. Life annuity with period certain B. Increasing term C. Limited pay whole life D. Interest-sensitive whole life
C. Limited pay whole life
Which of the following types of policies will provide permanent protection? A. Term life B. Group life C. Whole life D. Credit life
C. Whole life
Which of the following types of insurance policies would provide the greatest amount of protection for a temporary period during which an insured will have limited financial resources? A. Whole life B. Annuity C. Variable life D. Term
D. Term
An adjustable Life policy can change which of the following policy features? A. The mortality expense B. The investment account C. The insured D. The coverage period
D. The coverage period
An insured receives a monthly summary for his life insurance policy. He notices that the cash value of the policy is significantly lower this month than it was last month. What type of policy does the insured have? A. Term B. Securities C. Stock D. Variable
D. Variable
Which of the following terms best describe the coverage provided by term policies, as compared to any other form of protection? A. Greatest B. Least C. Most Comprehensive D. Longest
A. Greatest