types of policys
Which Universal Life option has a gradually increasing cash value and a level death benefit?
option a
Which of the following is NOT true regarding the annuitant?
the annuitant cannot be the same person as the annuity owner
Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be
adjusted to the insured's age at the time of renewal
Which of the following products provides income for a specified period of years or for life, and protects a person against outliving his or her money?
an annuity
The LEAST expensive first-year premium is found in which of the following policies?
annually renewable term
The death protection component of Universal Life Insurance is always
annually renewable term
Which of the following is TRUE regarding the annuity period?
it may last for the lifetime of the annuitant
Which of the following is NOT true regarding the accumulation period of an annuity?
it would not occur in a deferred annuity
Which statement is NOT true regarding a Straight Life policy?
its premium steadily decreases over time, in response to its growing cash value
A Universal Life Insurance policy is best described as a/an
Annually Renewable Term policy with a cash value account.
What type of premium do both Universal Life and Variable Universal Life policies have?
flexible
An agent selling variable annuities must be registered with
FINRA
Fixed annuities provide all of the following EXCEPT
hedge against inflation
A lucky individual won the state lottery, so the state will be sending him a check each month for the next 25 years. What type of annuity products are they likely to use to provide these benefits?
immediate annuity
To sell variable life insurance policies, an agent must receive all of the following EXCEPT
SEC registration
Which of the following statements is correct regarding a whole life policy?
The policyowner is entitled to policy loans.
Annually renewable term policies provide a level death benefit for a premium that
increases annually
A Return of Premium term life policy is written as what type of term coverage?
increasing
All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT
Upon conversion, the death benefit of the permanent policy will be reduced by 50%.
An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?
universal life
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 20 years or until death, whichever occurs first.
When would a 20-pay whole life policy endow?
When the insured reaches age 100
An individual has just borrowed $10,000 from his bank on a 5-year installment loan requiring monthly payments. What type of life insurance policy would be best suited to this situation?
decreasing term
What does "level" refer to in level term insurance?
face amount
Which policy component decreases in decreasing term insurance?
face amount
Which of the following is NOT a type of whole life insurance?
increasing term
Which of the following is TRUE regarding the premium in term policies?
it is level
A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured. Which policy is that?
joint life
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
Variable Whole Life insurance is based on what type of premium?
level fixed
A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?
level term
The premium of a survivorship life policy compared with that of a joint life policy would be
lower
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 is NOT one of the three basic types of coverages that are available, based on how the face amount changes during the policy term?
renewable
If an agent wishes to sell variable life policies, what license must the agent obtain?
securities
A domestic insurer issuing variable contracts must establish one or more
separate accounts
An insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured, and matures at the insured's age 100 is called
single premium whole life
Which of the following policies would be classified as a traditional level premium contract?
straight life
Which of the following is called a "second-to-die" policy?
survivorship life
Which of the following would help prevent a universal life policy from lapsing?
target premium
All of the following statements about equity index annuities are correct EXCEPT
the annuitant receives a fixed amount of return
The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?
the death benefit can be increased by providing evidence of insurability
An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term?
the insured may renew the policy for another 10 years, but at a higher premium rate
Which of the following determines the cash value of a variable life policy?
the performance of the policy portfolio
Which of the following best describes what the annuity period is?
the period of time during which accumulated money is converted into income payments
The policyowner of a Universal Life policy may skip paying the premium and the policy will not lapse as long as
the policy contains sufficient cash value to cover the cost of insurance