Types of Life Policies
The type of insurance sold to a debtor and designated to pay the amount due on a loan if the debtor dies before the loan is repaid is called
Credit life
Which of the following would be the beneficiary in credit life insurance?
Creditor
A young father would like a life insurance policy to provide coverage for all 5 family members at the lowest cost. Which type of policy would he most likely buy?
Family Protection Policy
Which rider, when attached to a permanent life insurance policy, provides an amount of insurance on every family member?
Family term rider
What kind of policy does NOT typically require proof of insurability?
Group insurance
What kind of policy issues certificates of insurance to insureds?
Group insurance
Which statement is NOT true regarding a Straight Life Policy?
Its premium steadily decreases over time, in response to its growing cash value.
Which of the following determines the cash value of a variable life policy?
The performance of the policy portfolio
A Straight Life policy has what type of premium?
A level annual premium for the life of the insured Straight Life policies charge a level annual premium for the lifetime of the insured and provide a level, guaranteed death benefit.
Which of the following types of policies allows for a flexible premium and a variable investment component?
Variable universal life insurance
Which of the following is a key distinction between variable whole life and variable universal life products?
Variable whole life has a guaranteed death benefit
An insured purchased a Life Insurance policy. The agent told him that depending upon the company's investments and expense factors, the cash values could change from those shown in the policy at issue time. The policy is a/an
Interest-sensitive Whole Life
Which of the following policies would be classified as a traditional level premium contract?
Straight life
An Adjustable Life policyholder can change which of the following policy features?
The coverage period
When the breadwinner that is insured by a Family Policy dies, what rights are provided to other family members that are covered under the policy?
They can convert their coverage to permanent life insurance without evidence or insurability.
