Primerica
When premiums are more than the cost of the policy
When does an adjustable life policy accumulate cash value?
up to a certain age
When is term life insurance renewable?
Evidence of insurability
When the amount of the insurance in increased in an adjustable life policy, what will the insurer require from the insured?
Universal Life Insurance
Between adjustable life and universal life policies, which one provides more flexibility to the policyowner?
Whole Life Insurance
If an insured terminates membership in group life insurance, to what type of insurance can the insured covert the coverage?
Tax deferred
Regarding taxation, how does the cash value of a universal life policy accumulate?
Annually renewable term
The death protection component of a universal life policy is expressed as what type of coverage?
Guaranteed and Current
Universal life policies have two types of interests rates. What are they?
Face amount
What policy component must decrease in decreasing term insurance?
Age 100
Whole life policies provide protection until the insured reaches what age?
Limited-pay Whole Life
What type of policy is Life Paid-up at Age 65?
Annually renewable term
Group life insurance policies are written as what type of insurance?
The premium is based on the average age of the insureds.
How is the premium determined in a joint life insurance policy?
Age 100
The policy owner of a whole life insurance policy is also the insured. What age must the insured attain in order to receive the policy's face amount?
Single premium whole life
What type of whole life insurance policies only requires a payment of premium at its inception, and in addition to providing insurance protection for the life of the life of the insured, endows at the insured's age 100?
Single premium whole life
What type of whole life insurance policy generates immediate cash value?
20-year level term
A policy states that it will pay a specified face amount if the insured dies during the 20 year period. What type of policy is this?
Variable
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?
Evidence of insurability
If an employee wants to join group life insurance coverage outside of the open enrollment period, what would the employee have to provide?
Upon the first death
In a joint life policy, when is the death benefit paid?
The insured's age
In annually renewable term policies, what is the annual premium based upon?
Limited Pay Whole Life
Refers to whole life payments made for a specified number of years such as 20-pay life, or the age by which all premiums are paid-up by age 65.
Decreasing term
What type of life insurance is best suited to cover a mortgage?
Term life insurance
What type of life insurance policy offers pure death protection
Limited-pay Whole Life
A whole life policy that requires that the policy owner only pays premiums for a specified number of years is known as what kind of policy?
Decreasing Term
An individual has just borrowed 10K on a 5-year note from his bank. The note is due in installments. What type of life insurance policy would be best suited to this situation?
The premium remains level
In term polices, what happens to the premium through the term of the policy?
The value and death benefit
In variable universal life insurance, to what policy components does the term variable refer?
Universal Life Insurance
In what type of life insurance policies can the policy owner skip premium payments without the policy lapsing?
Mistype (check answer in chapter) The death benefit increases each year, but the amount cash value increases
Under Option B in a universal life policy, what happens to the death benefit?
Loan values
What are the living benefits of whole life insurance?
Group policy
What type of policy issues certificates of insurance to the insureds?
The beneficiary
Who are the taxes earned on an annuity paid by?
The policy owner
Who is entitled to the cash values in a life insurance policy?
A minor
Who is insured under a juvenile life policy?
The face amount of the life insurance policy will decrease as the mortgage policy declines.
An insured has a mortgage loan. What will happen to the premium payments as the mortgage matures?
Group's purpose, size, financial strength and turnover
What are the characteristics of the group that underwriters will consider before issuing a group life policy?
Option A - Level Death Benefit and Option B - Increasing Death Benefit
What are the death benefit options in universal life?
Term Life Whole Life Flexible Premium Policies Variable Life Specialized Policy Group Life Credit Life
What are the different types of life insurance?
Face amount
What does level refer to in level term insurance?
The contract date
When do the rights of ownership become effective for an annuity?
Term = no cash value to borrow against
Why are policy loans not available on term insurance?
Level Term
The premium and amount of coverage are remain the same throughout the term for what type of insurance?
For 20 years or until the insured's death, whichever occurs first.
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 what time period?
The gauranteed cash value at the end of each year for the first 20 years, shown per thousand units.
What does a whole life table show?
The insured's age
What is the conversion of whole life insurance based upon?
Amount of payment Period of premium Face amount Period of protection
What elements of an adjustable life policy can be changed the policy owner?
The cash value is paid to the policyowner
What happens to the cash value when a whole life insurance policy matures?
The premiums paid remain the same, the face amount decreases.
What happens to the face amount and premiums of a decreasing term policy?
The premium increases with each renewal
What happens to the premium in an annually renewable term life policy?
A contract that will pay a specific indemnity to it's owner over a period of time
What is an annuity?
Evidence of Insurability is not required.
What is the main advantage of converting from group life insurance to individual coverage?
Premium payment mode
What is the major difference between the most common types of Whole Life policies: Straight Life, Limited Payment and Single Premium?
To prevent the policy from lapsing
What is the purpose of establishing the target premium for a universal life policy?
Whole Life
What type of life insurance policy provides permanent protection?
Group Insurance
What type of policy is typically issued without proof of insurability from the insured?
Traditional or Straight Whole Life
What type of premium has a level premium paid and provides coverage until insured dies or reaches age 100?
A level premium for the life of the insured
What type of premium is charged on a straight life policy?
Option A Universal Life Insurance
What universal life option has a gradually increasing cash value and a level death benefit?
Age 100
When do all whole life insurance policies mature, regardless to payment arrangement?
When the insured reaches age 100
When would a 20-pay whole life policy endow?
Term life insurance can be converted to whole life, but not the reverse.
Which insurance is convertible?
whole life policy
Which insurance policy benefits are packaged?
Whole life single premium policy
Which insurance policy has immediate cash value?
Universal Whole Life
Which life insurance policy is transparent (stand alone)?
The employer (also know as the sponsor of the group)
Who owns a group life insurance contract?
The full death benefit
Whole life insurance policies mature when the insured reaches the age of 100. If the owner of the whole life policy (the insured) dies at age 80, and there are no outstanding loans on the policy, what portion of the death benefit will be paid to the beneficiary?
No
Does an annuity have cash value?
