Chapter 3

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

Which of the following would help prevent a universal life policy from lapsing

Target Premium

All of the following entities regulate variable life policies EXCEPT

The Guaranty Association

Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit

Universal Life - Option A

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

Which of the following is incorrect regarding a 100,000 20-year level term policy

at the end of 20 years, the policys cash value will equal 100,000

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

increases annually

Variable Whole life insurance is based on what type of premium

level fixed

A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy

required a premium increase each renewal

Which type of life insurance policy allows the policy owner to pay more or less than the planned premium

universal life