Life insurance exam 3

Universal life, options B

A policy that allows the beneficiary to collect both the death benefit and cash value upon the death of the insured is

Variable

An insured receives a monthly summary regarding his life insurance policy. He notices that the cash value of the policy is significantly lower this month than it was last month. What type of policy does he have?

100

The insured is also the policyowner of a whole life policy. What age must the insured attain in order to receive the policy's face amount?

Annually renewable term

What type of life insurance is most commonly used for group plans?

Decreasing term

When the insured purchased a new home he wanted to purchase a life insurance policy that would protect his family against losing the home should he die before the mortagage was paid. The most inexpensive type of policy that would accomplish this need would be

Life paid-up at age 65

Which of the following is an example of a limited-pay life policy?

Premium is based on the average age of the insured

Which of the following is true regarding a joint life policy?

Single premium whole life

An insurance policy that only requires a payment of premium at its inception and provides insurance protection for the life of the insured and endows at the insureds age 100, is called

Master contract

In a single employer group plan, what is the name of a document that is issued to the employer?

The death benefit can be increased by providing evidence of insurability

An individual owns adjustable life policy. Sometime in the future he wants to increase the death benefit. Which of the following statements is correct regarding the change?

Renews each year with an increased premium

An annually renewable term policy

Securities

If an agent wishes to sell variable life policies, what license must the agent obtain in addition to a life insurance license?

Require evidence of insurability

If an employee wants to enter the group outside of the open enrollment period, to reduce adverse selection, the insurer may

If the insured dies after the end of the term, there is no death benefit to the beneficiary

Which of the following is true regarding term insurance?

Remains constant over time

With a traditional whole life policy, the death benefit