Primerica Chapter 2

Whose life expectancy is taken into consideration in an annuity?

Annuitant

With a traditional whole life policy, the death benefit

Remains constant over time

The insured is also the policyowner of a whole life policy. What age must the insured attain in order to receive the policy's face amount?

100

When the insured purchased a new home, he wanted to purchase a life insurance policy that would protect his family against losing it should he die before the mortgage was paid. Which policy is best suitable for that need?

Decreasing term

An individual inherited a large sum of money at age 40 and wanted to use it to provide a guaranteed income after his retirement at age 60. What type of annuities would best meet this need?

Deferred

An individual owns an adjustable life policy. Sometime in the future he wants to increase the death benefit. Which statement is correct regarding the death benefit increase?

It can be increased by providing evidence of insurability.

An annually renewable term policy

Renews each year with an increased premium

The renewable provision allows the policyowner to renew the coverage at the expiration date

Without evidence of insurability

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

Life paid up at age 65

What is true regarding a joint life policy?

Premium is abased on the average of the insureds.

Which is true regarding a universal policy?

The death benefit can be increased without evidence of insrability

An insured receives a monthly summary of his life insurance policy. The cash value this month is significantly lower than it was last month. What type of policy is it?

Variable

What is a disadvantage of term insurance?

If the insured dies after the end of the term, there is no death benefit to the beneficiary

What type of life insurance policy generates immediate cash value?

Single Premium

The time period during which an annuitant contributes to an annuity is called

The accumulation period