Types of Life Insurance Policies

An individual purchased $100,000 Joint Life policy on himself and his wife. Eight years later, he died in an automobile accident. How much will his wife receive from the policy?

$100,000

Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured?

Option B

Which of the following life insurance policies allows a policyowner to take out a loan from the policy's cash value?

Variable universal life

Which component increases in the increasing term insurance?

Death benefit

Annually renewable term policies provide a level death benefit for a premium that

Increases annually

What are two components of a universal policy?

Insurance and cash account

Which of the following best describes annually renewable term insurance?

It is level term insurance

An insured buys a 5-year level premium term policy with a face amount of $10,000. The policy also contains renewability and convertibility options. When the insured renews the policy in 5 years, what will happen to the premium?

It will increase because the insured will be 5 years older than when the policy was originally purchased

Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. What type of insurance would be the most affordable and still provide a death benefit should one of them die?

Joint 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?

Limited pay whole life

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?

Limited-pay life

To sell variable life insurance policies, an agent must receive all of the following EXCEPT

SEC registration

Which type of life insurance policy generates immediate cash value?

Single premium

Which of the following policies would be classified as a traditional level premium contract?

Straight life

All of the following entities regulate variable life policies EXCEPT

The Guaranty Association

Which of the following statements about group life is correct?

The cost of coverage is based on the ratio of men and women in the group

Which of the following best defines target premium in a universal life policy?

The recommended amount to keep the policy in force throughout its lifetime

In an Adjustable Life policy all of the following can be changed by the policy owner EXCEPT

The type of investment

All of the following are characteristics of a group life insurance plan EXCEPT

There is a requirement to prove insurability on the part of the participants

What is the purpose of establishing the target premium for a universal life policy?

To keep the policy in force

In a survivorship life policy, when does the insurer pay the death benefit?

Upon the last death