Exam 1 life policies
Term insurance has which of the following characteristics?
expires at the end of the policy period
which of the characteristics is consistent w a straight life policy?
premiums are payable for as long as there is insurance coverage in force
what type of life insurance are credit policies issued as?
term
g purchased a family income policy at age 40. the policy has a 20 yr rider period. if g were to die at age 50, how long would Gs family receive income?
10 yrs
Which of these life products is NOT considered interest sensitive?
Modified whole life
What kind of life insurance starts out as temporary coverage but can be later modified to permanent coverage without evidence of insurability?
convertible term
f needs life insurance that provides coverage for only a limited amount of time w a death benefit that changes regularly according to a schedule. what kind of policy is needed?
decreasing term policy
What kind of special need would a policyowner require w an adjustable life insurance policy?
flexible premiums
Variable life products require a producer to
hold a life insurance license and securities license
d needs life insurance that provides coverage for only a limited amount of time while also paying the lowest possible premium. what kind of policy is needed?
level term
all of these insurance products require an agent to have proper FINRA securities registration in order to sell them except for:
modified whole life
Which is true concerning a variable universal life policy?
policyowner controls where the investment will go and selects the amount of premium paid
Which of the following characteristics is correct about interest sensitive whole life?
premium payments can vary
the investment gains from a universal life policy usually go toward:
the cash value
The amount of coverage on a group credit life policy is limited to:
the insureds total loan value
All of these statements about equity indexed life insurance are correct except:
the premiums can be lowered or raised based on investment performance
Which of the following types of policies pays a benefit if the insured goes blind?
AD&D (accidental death & dismemberment) policy can provide financial benefits if an insured is killed, loses a limb, suffers blindness, or is paralyzed in a covered accident
Which of the following statements describe a modified endowment contract? (MEC)
Exceeds the maximum amount of premium that can be paid into a policy and still have it recognized as a life insurance contract
A life policy with a death benefit can fluctuate according to the performance of its underlying investment portfolio is referred to as:
Variable Life
Which of the following policies is characterized by a flexible premium and death benefit and allows the policyowner control of the investment aspect of the plan?
Variable Universal Life
