Exam FX LIFE INSURANCE
Which policy would not offer a policy loan option ?
Level term life " only found in policies that contain cash values"
Which type of life insurance policy generates immediate cash value?
Single premium
Which life polices do not contain cash value ?
Term life policies
What's the main resource insurers use when underwriting?
The application BROTHA
If the insured dies during the grace period, what is the insurer obligated to pay?
The face value of the policy , minus any owed premium..
What determines the cash value of a variable life policy ?
The performance of a separate account
The waiver of cost rider found in what type of life insurance ?
Universal life
In a survivorship life policy, when is the death benefit paid?
Upon the LAST death
Which life policy provides permanent protection?
Whole life policy " they are rendered to as permanent protection, as long as premiums are paid, coverage will continue for the life of the insured"
If an insurance company states that their policies are guaranteed by the existence of the insurance guaranty association, that would be considered what?
An unfair trade practice
What type of life insurance is commonly most used for group plans ?
Annually renewable term
When must insurable interest exist in a life insurance policy ?
At the time of application
Why do single premium whole life policies generate immediate cash value?
Because of the lump sum premium payment made to the insurer
If a Benny wants a guarantee that policy proceeds will be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select?
Fixed period " under a fixed period settlement option, a specified # of years is selected & payments will be paid until the entire $ amount is distributed"
What is a buyers guide ?
Is a generic guide that explains life insurance in a way that the average consumer can understand
What type of policy shortens the premium paying period but allows the coverage to continue to age 100?
Limited pay
What are the 2 death benefits offered by a universal life insurance policy ?
Option A: the level death benefit Option B: increasing death benefit option
An insured has a continuous premium whole life policy & would like to use the policy dividends to pay her policy sooner. What dividend option could she use?
Paid up option
Upon policy delivery, I must confirm what 3 things are received ?
Statement of good health Correct and signed application Payment of premium
Which life insurance policy has 2 death benefit options ?
Universal life policy
What does "level" refer to in level term insurance ?
face amount or "death benefit" ^ remains level
