Life Insurance policies- Provisions, Options and Riders
What kind of life insurance stars out as temporary coverage but can be later modified ot permanent coverage without evidence of insurability
Convertible Term
Credit life Insurance is typically issued with which of the following types of coverage?
Decreasing term
Who has the option to renew a Renewable Term Policy?
Insured
Which type of policy is considered to be overfunded, as stated by IRS guidelines?
Modified Endowment Contract
T would like to be assured $10,000 is available in 10 years to replace a roof on his house. What kind of $10,000 policy should T purchase?
Ten-Year Endowment
What type of life insurance are credit policies issued as?
Term
K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary?
$20,000 death benefit
Which of the following types of Life policies most likely contains a Renewability Feature?
10 Year Convertible Term
Under an interest Sensitive Whole Life policy
Cash values are determined by interest rates
All of these are characteristics of an adjustable Life policy, EXCEPT:
Face amount can be adjusted using policy dividends
What type of life policy covers two lives and pays the face amount after the first one dies?
Joint Life Policy
K is looking to purchase renewable term insurance. Which of these types of Term insurance may be renewable?
Level
Which of these life products is NOT considered interest-sensitive?
Modified Whole Life
Whole Life insurance policies are contractually guaranteed to provide each of the following, EXCEPT:
Partial withdrawal features beyond a surrender change period.
K purchased a Life insurance policy in 1986 which paid 10% interest in the early years of the policy. Twenty years after the purchase, she received a notice from the insurer stating that the policy will soon terminate unless a much-higher premium is paid because of falling interest rates. This type of policy is known as a(n) _________ life policy.
Universal
The cash value in a(n)________ Life policy may fluctuate to reflect changing assumptions regarding mortality cost, interest, and expense factors.
Universal
What type of life insurance incorporates flexible premiums and an adjustable death benefit?
Universal Life
When is the face amount paid under a Joint life and Survivor policy?
Upon death of the last insured
a(n) ________ life policy offers the owner investment in products such as money market funds, long term bonds and equities.
Variable
Under a Renewable Term policy,
the renewal premium is calculated on the basis of the insured's attained age