Life Insurance CH. 2 (Types of Policies)
Which Universal Life option has a gradually increasing cash value and a level death benefit?
Option Av
What characteristics makes whole life permanent protection?
Coverage until death or age 100
Which of the following would help prevent a universal life policy from lapsing?
Target premium
An individual purchased $100,000 joint life policy on himself and his wife. Eight years later, he died in an automobile accident. How much will his wife receive from the policy?
$100,000
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 (allow for increases or decreases in the face amount or premium, so long as the premium is sufficient to pay for the mortality)
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
Adjusted to the insureds age at the time of renewal
When an annuity is written, whose life expectancy is taken into account?
Annuitant
Which of the following is a feature of variable annuity?
Benefit payment amounts are not guaranteed
Which of the following is true regarding annuity period?
It may last for the lifetime of the annuitant
Which of the following is an example of a limited-pay life policy?
Life paid-up at age 65
Equity Indexed Annuities
Seek higher returns
Which type of life insurance policy generates immediate cash value
Single premium
Which of the following policies would be classified as a traditional level premium contract?
Straight life
Which of the following types of policies allows for a flexible premium and a variable investment component?
Variable universal life insurance
When would a 20-pay whole life policy endow?
When the insured reaches age 100