Chapter 4: Types of Life Policies

An employee will be taxed on the cost of group life insurance paid by the employer if the amount of coverage exceeds?

$50,000

London owns a policy in which she is covered as the breadwinner with permanent insurance and with decreasing term insurance in the form of a rider what policy is this?

Family income policy

One of the advantages of family life insurance policy that provides coverage for children is that?

Inches convert to permanent insurance for the children without requiring evidence of insurability

What is the term insurance plan that provides increasing death benefits as the insured ages?

Increasing term

Whole life insurance

Insurance that provides lifetime protection and includes savings element or cash value

What type of Premium does a straight life policy ?

It has a level annual premium for the life of the insured

Convertible term insurance

Lucy with the right to convert Coliseum insurance without evidence of insurability

Which Universal LIfe option has a gradually increasing cash value and a level Death Benefit?

Option A: under option A death benefit remains level while the cash Value gradually increases. Death benefit increases at a later date in order to maintain a gap b/t the cash value and Death benefit

Term Life Insurance

Temporary protection that only provides coverage for a specific period of time. Pure Life

What's true regarding Insurance amount in a credit policy?

The Creditor can only ensure the debitor for the amount owed

Level term

The most common type of temporary insurance to purchase

Decreasing term policy does what?

The payable premium amount steadily declines throughout the duration of the contract. Premium stya level, as the Face values decreases.

Renewable term

The purest form of term insurance and maybe renewable every year but their premium increase yearly due to their age

An adjustable life policy everything except?.

The type of investment

The predator cannot require that Deborah get insurance from a certain insurers

What is not allowed in credit life insurance ?

Convertible life insurance

What type of policy can't be changed from one that does not accumulate cash value to one that does?

Group Insurance

What type of policy issues a certificate to insureds?

In level insurance what does level refer to?

face value amount

Coverage period

An adjustable life policy owner can change which of the following?

A man wants to buy a life insurance policy in which he can count on the same benefits as stated in the contract which type is it?

fixed policy