Life and Health Chapters
In an annuity, the accumulated money is converted into a stream of income during which time period?
Annuitization period
Which of the following products will protect an individual from outliving their money?
Annuity
The term "fixed" in a fixed annuity refers to all of the following EXCEPT?
Death benefit
A Return of Premium term life policy is written as what type of term coverage?
Increasing
An insured purchased a Life Insurance Policy. The agent told him that depending upon the company's investments and expense factors, the cash values could change from those shown in the policy at issue time. The policy is a/an
Interest-sensitive Whole Life
Which of the following best describes annually renewable term insurance?
It is level term insurance
Variable Whole Life insurance is based on what type of premium?
Level fixed
All of the following are true about variable products EXCEPT
The premiums are invested in the insurer's general account
Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?
Universal Life - Option A
A Straight Life policy has what type of premium?
A level annual premium for the life of the insured
What license or licenses are required to sell variable annuities?
Both a life insurance license and a securities license.
What is another name for interest-sensitive whole life insurance?
Current assumption life
Which of the following is TRUE regarding the accumulation period of an annuity?
It is a period during which the payments into the annuity grow tax deferred
Which of the following best describes annually renewable term insurance?
It is level term insurance.
Your client 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
Which of the following has the right to convert the existing term coverage to permanent insurance?
Policyowner
A domestic insurer issuing variable contracts must establish one or more
Separate accounts.
Which of the following is TRUE regarding variable annuities?
The annuitant assumes the risks on investment
Which of the following is NOT true regarding the annuitant
The annuitant cannot be the same person as the annuity owner.
Which of the following is NOT true regarding the annuitant?
The annuitant cannot be the same person as the annuity owner.
All of the following are true of an annuity owner EXCEPT
The owner must be the party to receive benefits.
Which of the following is NOT true regarding Equity Indexed Annuities
They earn lower interest rates than fixed annuities
Which of the following is a key distinction between variable whole life and variable universal life products?
Variable whole life has a guaranteed death benefit
The main difference between immediate and deferred annuities is
When income payments begin
Which statement is NOT true regarding a Straight Life policy?
Its premium steadily decreases over time, in response to its growing cash value
A man decides to purchase a $100,000 Annually Renewable Term Life policy additional protection until his children finished college. He discovers that his policy
Required a premium increase each renewal.
A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy
Requires a premium increase each renewal
The president of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements will be true?
The annuitant must be a natural person.
Which of the following best describes what the annuity period is?
The period of time during which accumulated money is converted into income payments
Which of the following is NOT true regarding Equity Indexed Annuities?
They earn lower interest rates than fixed annuities
An insured owns a life insurance policy. To bo 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
All of the following statements about equity indexed annuities are true EXCEPT
The annuitant receives a fixed amount of return
Which of the following products requires a securities license?
Variable annuity
Which of the following products requires a securities license?
Variable annuity.
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 types of policies allows for a flexible premium and a variable investment component?
Variable universal life insurance
