Life: (#1 80%) — types of Policies

And insured is also the policy owner of a whole life policy. What age must be insured attain in order to receive the policies face value amount? 65 70 1/2 9 100

100

*Level term insurance provides a level Death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be... Discounted Adjusted to the insured's age at the time of renewal Determined by the health of the insured Based on the issue age of the insured*

Adjusted to the insured's age at the time of renewal

*The least expensive first year premium is found in which of the following policies? Level term Annually renewable term Increasing term Decreasing term

Annually renewable term

*Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid... For 20 years or until death, which ever occurs first Until the policy owner reaches age 65 For at least 20 years Enjoy the policy owner's age is 100, when the policy matures

For 20 years or until death, which ever occurs first

*Which of the statements is not true regarding a straight life policy? The face value of the policy is paid to the insured at age 100 It usually develops cash value by the end of the third policy year* It has the lowest annual premium of the three types of whole life policies It's premium steadily decreases overtime, in response to its growing cash value

It's premium steadily decreasing time in response to its growing cash value

*Which the following is an example of a limited pay life policy? Level term life Straight life Life paid-up at age 65 Renewable term to age 70

Life paid-up at age 60

*Which of the following is called a "2nd to die" policy? Juvenile life Joint life Survivorship life Family income

Survivorship life

*Who bears all of the investment risk and a fixed annuity? The insurance company The owner* The beneficiary The annuitant

The insurance company — fixed annuities guarantee income payments. The insurance company can afford to make guarantees only if the money made on investments from the cash balance is conservative enough to ensure a guaranteed rate to the annuity owners. So The insurance company must make greater than the sum of its guaranteed fix payments in order for it to still be able to pay the fixed payments at a net gain

Which of the following is true regarding the premium in term policies? The premium is level Only Level term policy as a level premium The premium in term policies is not based on the insured's age Decreasing term policy will have a decreasing premium

The premium is level

*All of the following are true regarding the convertibility option under a term life insurance policy except... Upon conversion, the death benefit of the permanent policy will be reduced by 50% Evidence of insurability is not required Most term policies contain it convertibility option Upon conversion, the premium for the permanent policy will be based upon attained age

Upon conversion, the death benefit of the permanent policy will be reduced by 50%

Which of the following types of policies will provide permanent protection? Term life Group life Whole life Credit life

Whole life

*Which of the following is true regarding the accumulation period of an annuity? It is limited to up to 10 years It is a period during which the payments into the annuity grow tax deferred It is also referred to as the annuity period It is a period of time during which the beneficiary received income

It is a period during which the payments into the annuity grow tax deferred

John wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client? Limited-pay whole life Interest-sensitive whole life Life annuity with period Certain Increasing term

Limited-pay whole life

An insurance policy that only requires a payment of premium ad is inception, provides insurance protection for the life of the insured, and matures at the insurance age 100 is called Graded premium whole life Single premium whole life Modified endowment contract Level term life

Single premium whole life

Which of the following types of policies allows the policy owner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount? Variable life Adjustable life Universal life Flexible life

Universal life