Life insurance guarantee exam part 2

a whole life policy that will generate immediate cash value is a A. single premium policy B. continuous premium policy C. variable the policy D. limited-pay policy

A

the entire contract includes all of the following EXCEPT A. a buyer's guide B. the life insurance policy C. a copy of the application D. any riders or amendments

A

an annuity would normally be purchased by an individual who wants A. earn a higher rate of interest B. create an estate C. provide income for retirement D. provide a death benefit to the surviving family

C

what happens to the face amount of a whole life policy if the insured reaches to the age of 100? A. it is paid to the insured's estate and the policy is terminated B. it is paid to the beneficiary in full C. the cash value and the face amount are paid to the insured D. the face amount is paid to the insured

D

which of the following terms is used to define the period of time during which an annuitant makes payments into an annuity? A. premium building period B. annuity period C. loading period D. accumulation period

D

which of the following is the distinguishing characteristic of the interest-adjusted net cost method A. keeping yearly premiums and dividends level B. considering the time value of money in comparing life insurance costs C. comparing interest rates at a designated point in time D. buying equity indexed life insurance

B

all of the following information needs to be included on an application for life insurance EXCEPT A. health insurance policies in force B. life insurance with other insurers C. the agent's statement, if applicable D. medical information about the applicant

A

when life insurance proceeds are used to pay inheritance taxes and federal estate taxes, it is known as A. estate conservation B. estate creation C. liquidity D. life settlement

A

an annuity owner receives the same guaranteed payment every month. What type of annuity is it? A. guaranteed B. single C. fixed D. immediate

C