Life insurance policies
in the event there is no beneficiary living at the time of death of an insured person, what is the maximum the benefits payments provision will pay to any person showing evidence of incurred funeral or other expenses incidental to the last illness or death o the insured person ?
$2,000
Group of life insurance is a single policy written to provide coverage to members of a group. which of the following statements concerning group life is CORRECT?
100% participant of members is required in noncontributory plans
A policy states that it will pay a specified face amount if the insured dies during the 20 year premium-paying period and nothing if death occurs after the 20 year period. What type of policy is this?
20 year level term
in order to qualify for conversion from group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?
5
What type of premium is charge on a straight life policy?
A level premium for the life of the insured
Who is insured under a juvenile life policy?
A minor
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
The policyowner of a whole life insurance policy is also the insured. What age must the insured attain in order to receive the policy's face amount?
Age 100
Whole life policies provide protection until the insured reaches what age?
Age 100
Group life insurance policies are written as what type of insurance?
Annually renewable term
The death protection component of a universal life policy is expressed as what type of coverage?
Annually renewable term
Which of the following is INCORRECT regarding $100,000 20 year level term policy? a the policy premiums will remain levle for 20 years if the insured dies before policy expired the beneficiary will receive $100,000
At the end of 20 years the policys cash value will equal $100,000
An employee quits his job and coverts his group policy to an individual policy; the premium for the individual policy will be base on his
Attained age
In variable universal life insurance, to what policy component does the term "variable" refer?
Cash value and death benefit
What happens to the cash value when a whole life insurance policy matures?
Cash value is paid to the policyowner
Which component increases in the increasing term insurance?
Death Benefit
What type of life insurance is best suited to cover a mortgage?
Decreasing Term
An individual has just borrowed $10, 000 on a 5 year note from his bank. the note is due in installments. What type of life insurance policy would be best suited to this situation
Decreasing term
If an employee wants to join group life insurance coverage outside of the open enrollment period, what would the employee have to provide?
Evidence of insurability
When the amount of insurance is increased in an adjustable life policy, what will the insurer require from the insured?
Evidence of insurability
Which policy component decreases in decreasing term insurance?
Face amount
a young father would like a life insurance policy coverage for all five family members at the lowest cost. which type of policy would he most likely buy?
Family protection Policy
What type of premium do both Universal Life and Variable Universal Life policies have?
Flexible
the death benefit under the universal life option B
Gradually increases each years by the amount that the cash value increases
What type of policy issues certificates of insurance to the insureds?
Group policy
What are the characteristics of the group that underwriters will consider before issuing a group life policy
Group's purpose, size, financial strength and turnover
an association could buy group insurance for its members if it meets all of the following requirements EXCEPT
Has at least 50 members
A return of premium term life policy is written as what type of term coverage
Increasing
If a life insurance policy increases significantly in face amount (death benefit) when the insured reaches a specified age, what type of policy is this?
Jumping juvenile policy
variable whole life insurance is based on what type of premium
Level fixed
A policy will pay the death benefit if the insured dies during 20-year premium paying period and nothing if death occurs after the 20 year period. What type of policy is this?
Level term
A policy will pay the death benefit if the insured dies during the 20-year premium-paying period, and nothing if death occurs after the 20-year period. What type of policy is this?
Level term
What type of life insurance policy is life Paid-up age 65?
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?
Limited-pay whole life
What are the living benefits of whole life insurance?
Loan Values
The premium of a survivorship life policy compared with that of a joint life policy would be
Lower
one of the advantage of a family life insurance policy that provide coverage for children is that it
May be converted to permanent insurance for the children without requiring evidence of insurability
one of the advantage of a family life insurance policy that provides coverage for children is that it
May be converted to permanent insurance for the children without requiring evidence of insurability
which universal life option has gradually increasing cash value and a level death benefit?
Option A
What are the death benefits option in universal life policies
Option A- level death benefit and option B increasing death benefit
What is the major difference between the most common types of whole life policies: Straight life, Limited payment and single premium?
Premium payment mode
To sell variable life insurance policies, an agent must receive all of the following EXCEPT a A securities license b a life insurance license c SEC registration d FINRA registration
SEC registration
A domestic insurer issuing variable contracts must establish one or more
Separate accounts
What type of whole life insurance policies only requires a payment of premium at its inception, and in addition to providing insurance protection for the life of the insured, endows at the insured's age 100?
Single life premium whole life
What type of whole life insurance policy generates immediate cash value?
Single premium whole life
Regarding taxation, how does the cash value of a universal life policy accumulate?
Tax deferred
What type of life insurance policy offers pure death protection?
Term
What elements of an adjustable life policy can be changed by the policyowner
The amount and payment period of the premium, the face amount, and the period for protection.
In a group life insurance policy, the employer may select all of the following EXCEPT
The beneficiary
Who owns a group life insurance contract?
The employer (also known as the sponsor of the group)
Whole life insurance policies mature when the insured reaches he age of 100.if the owner of a whole life policy (the insured) dies at age 80, and there are no outstanding loans on the policy, what portion of the death benefit wit be paid to the beneficiary?
The full death benefit
In annually renewable term policies, what is the annual premium based upon?
The insured's attained age
An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?
The insurer will pay the full death benefit from the group policy to the beneficiary
an employee quits his job on May 15 and doesnt convert his group life insurance to an individual policy for a 2 weeks. He dies in a freak accident on June 1 which following statements best describes what will happen
The insurer will pay the full death benefit from the group to the beneficiary ( the employee usually has a period of 31 days after terminating from group in order to exercise the conversion option.)
What happens to the premium in an annually renewable term life policy?
The premium increases with each renewal
How is the premium determined in a joint life insurance policy?
The premium is based on the average age of the insureds
A group of 15 skydiver met at a seminar and began talking about life insurance during a break. Because it was expensive to get individual life insurance, they decided to band together to form a small group so that they could qualify for group life insurance. After they applied for group life insurance, they were rejected. Why?
The purpose of the group was to purchase life insurance
Why are policy loans not available on term insurance?
There is no cash value to borrow against
Between adjustable life and universal life policies, which one provides more flexibility to the policyowner?
Universal life
In what type of life insurance policies can the policyowner skip premium payment without the policy lapsing?
Universal life
Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit?
Universal life- Option A
In a joint life policy, when is the death benefits paid?
Upon the first death
An insured receives a monthly summary for 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 the insured have?
Variable
Which of the following types of policies allows for a flexibility premium and a variable investment component?
Variable universal life insurance
Which of the following is a key distinction between variable whole life and variable universal products?
Variable whole life has a guaranteed death benefit
When would 20-pay whole life policy endow?
When the insured reaches age 100
When does an adjustable life policy accumulate cash value?
When the premium paid are more than the cost of the policy
If an insurance terminates membership in group life insurance, to what type of insurance can the insured convert the coverage?
Whole life
What type of life insurance policy provides permanent protection?
Whole life
A variable products underlying assets must be kept in
a separate account
Which of the following is INCORRECT regarding a $100,000 20 year level term policy
at the end of 20 years the policys cash value will equal to $100,000
All of the following statements are correct regarding credit life insurance EXCEPT:
benefit are paid to the borrower's beneficiary
Which of the following statements is true about credit life insurance?
creditor is the policyowner
What is another name for interest-sensitive whole life insurance?
current assumption life
what is another name for interest-sensitivity whole life insurance
current assumption life
what is the main advantage of converting from group life insurance to individual coverage?
evidence of insurability is not required
What does "level" refer to in level term insurance?
face amount
What policy component must decrease in decreasing term insurance?
face amount
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?
for 20 years or until the insured's death, whichever occurs first.
The death benefit under the universal life Option B
gradually increases each year by the amount that the cash value increases
What type of policy is typically issued without proof of insurability from the insured?
group policy
A universal life insurance policy has two types of interest rates that are called
guaranteed and current
Universal life policies have two types of interest rates. What are they?
guaranteed and current
A return of premium term life policy is written as what type of term coverage?
increasing
Which of the following is correct regarding credit life insurance
it insures the debtor
What universal life option has gradually increasing cash value and a level death benefit?
option A
If an employee wants to enter the group outside of the open enrollment period, to reduce adverse selection, the insurer may
required evidence of insurability
which of the following would help prevent a universal life policy from lapsing
target premium
which of the following statement about group life is correct
the cost of coverage is baes on the ratio of men and women in the group
an adjustable life policyowner can change which of the following policy features?
the coverage period
Which of the following is TRUE regarding the insurance in a credit life insurance
the creditor can only insure the debtor for the amount owed.
The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?
the death benefit can be increased by providing evidenve of insurability
Under option B in a universal life policy, what happens to the death benefit?
the death benefit increase each year by the amount of the cash value increases.
all of the following are true regarding decreasing term policy EXCEPT
the payable premium aMOUNT steadily declines throughout the duration of the contract
Who is entitled to the cash values in a life insurance policy?
the policy owner
In term policies, what happens to the premium throughout the term of the policy?
the premium remains level
In an adjustable life policy all of the following can be changed by the policy owner EXCEPT the premium the amount of insurance the type of investment the length of coverage
the type of investment
When the breadwinner that is insured by a Family Policy dies, what rights are provided to other family members that are covered under the policy?
they can convert their coverage to permanent life insurance without evidence of insurability
What is the purpose of establishing the target premium for universal life policy?
to prevent the policy from lapsing
which of the following life insurance policies allows a policyowner to take out a loan form the policy's cash value
variable universal life
