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
At age 30, an applicant wants to start an insurance program, but realizing that his insurance needs will likely change, he wants a policy that can be modified to accommodate those changes as they occur. Which of the following policies would most likely fit his needs?
Adjustable Life
Which of the following life insurance policies allows a policy owner to take out a loan from the policy's cash value?
Variable universal life
Which of the following features of the Indexed Whole Life policy is NOT fixed?
Cash value growth
What characteristic makes whole life permanent protection?
Coverage until death or age 100.
Which component increases in the increasing term insurance?
Death benefit
In increasing and decreasing term policies, which policy component fluctuates during the policy term?
Death benefits.
Which of the following is NOT a type of whole life insurance?
Level term
All of the following are true about variable products EXCEPT
The premiums are invested in the insurer's general account.
In an Adjustable Life policy all of the following can be changed by the policy owner EXCEPT
The type of investment.
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
In a survivorship life policy, when does the insurer pay the death benefit?
Upon the last death.
