Life Insurance Policies
The amount of the loan will be subtracted from the death benefit
A policyowner borrowed a portion of cash value from his whole life policy. If the loan is not repaid, how will that affect the death benefit to the beneficiary?
Single premium whole life
What type of whole life insurance policy generates immediate cash value?
When the premiums paid are more than the cost of the policy
When does an adjustable life policy accumulate cash value?
A level premium for the life of the insured
What type of premium is charged on a straight life policy?
Decreasing term
An individual has just borrowed $10,00 on a 5-year note from his bank. The note is due in installments. What type of life insurance policy would be best suited for this situation?
The insured's attained age
In annually renewable term policies, what is the annual premium based upon?
Loan values
What are the living benefits of whole life insurance?
The amount and payment period of the premium, the face amount, and the period of protection
What elements of an adjustable life policy can be changed by the policyowners?
The premium increases with each renewal
What happens to the premium in an annually renewable term life policy?
Premium payment mode
What is the major difference between the most common types of whole life policies: straight life, limited payment and single premium?
when the insured reaches age 100
When would a 20-pay whole life policy endow?
The policyowner
Who is entitled to the cash values in a life insurance policy?
Age 100
Whole life policies provide protection until the insured reaches what age?
The premium remains level
In term policies, what happens to the premium throughout the term of the policy?
Universal life
In what type of life insurance policies can the policyowner skip premium payments without the policy lapsing?
For 20 years of until the insured's death, whichever occurs first
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 what time period?
Face amount
What does LEVEL refer to in level term insurance?
Face amount
What policy component must decrease in decreasing term insurance?
Whole life
What type of life insurance policy provides permanent protection?
Limited-pay whole life
A whole life policy that requires that the policyowner only pays premiums for a specified number of years is known as what kind of policy?