Life insurance types of policies 1
All of these statements about Equity Indexed Life Insurance are correct EXCEPT
The premiums can be lowered or raised, based on investment performance
The cash value in a(n)_life policy may fluctuate to reflect changing assumptions regarding mortality cost, interest, and expense factors
Universal
Which of the following life insurance policies combine term insurance with an investment element?
Universal Life
Which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options?
Variable Life
All of these characteristics of an adjustable life policy except
face amount can be adjusted using policy dividends
A life insurance policy that provides a policy owner with cash value along with a level face amount is called
whole life
A policy that becomes a Modified Endowment Contract (MEC)
will lose many of its tax advantages
if a 10 year life policy contains a renewability provision, the policy will renew
without evidence of insurability
Which of these types of policies may NOT have the Automatic Premium Loan provision attached to it?
Decreasing term
F needs life insurance that provides coverage for only a limited amount of time with a death benefit that changes regularly according to a schedule. What kind of policy is needed?
Decreasing term policy
P owns a $25,000 Life Policy that pays the face amount to him if he lives to age 70, or to his beneficiary if he dies before age 70. What kind of policy does P own?
Endowment at age 70
P is looking to purchase a life insurance policy that will pay a stated monthly income to his beneficiaries for 20 years after he dies and a lump sum of $20,000 at the end of that 20 year period. What type of policy should P purchase?
Family Maintenance Policy
What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies?
Family Maintenance Policy
Which of these needs is satisfied by Adjustable Life insurance?
Insured's need for flexible premiums
Which of these would be considered a Limited-Pay Life policy?
Life Paid-Up at Age 70
At what point does a whole life policy insurance policy endow?
When the cash value equals the death benefit
Variable Whole Life Insurance can be described as
both an insurance and securities product
The Combination of Whole Life and _____ Term insurance is referred to as a Family Income Policy
decreasing
Additional coverage can be added to a Whole Life policy by adding a(n)
decreasing term rider
The amount of coverage on a group credit life policy is limited to
the insured's total loan value
Under a Graded Premium Whole Life policy,
the premium increases each year during the early years of the contract and remains the same after that time
Under a Renewable Term policy,
the renewable premium is calculated on the basis of the insured's attained age
A(n)__life policy combines investment choices with a form of term coverage
Variable universal
Which statement about a whole life policy is true?
Cash value may be borrowed against
The investment gains from a Universal Life Policy usually go toward
the cash value
J is 35-years old and looking to purchase a whole life insurance policy. Which of the following types of policies will provide the most rapid growth of cash value?
20-pay life
Y purchased $100,000 worth of permanent protection on himself and $50,000 worth of 10-year Term coverage for his wife on the same policy. Which of these policies did Y purchase?
A Whole Life Policy with an Other Insured Rider
Which statement is TRUE regarding a variable whole life policy?
A minimum guaranteed Death benefit is provided
All of these insurance products require an agent to have proper FINRA securities registration in order to sell them EXCEPT for
Modified Whole Life
Which of the following information is NOT required to be included in a whole life policy?
Policy's guaranteed dividend table
Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies?
Policyowner
Which is true concerning a Variable Universal Life policy?
Policyowner controls where the investment will go and selects the amount of the premium payment
What advantage does the renewability give to a term life policy
The insured may extend the coverage period.
S, age 40, is looking to buy a Life Insurance policy that will allow for increases or decreases in coverage as his needs change. The policy best suited for S would be
Universal life
A life policy with a death benefit that can fluctuate according to the performance of its underlying investment portfolio is referred to as
Variable Life
Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling?
Variable Life
S owns a life insurance policy with cash values that fluctuate according to the underlying investment performance of common stocks. Which of these policies does S own?
Variable Whole Life
Life insurance immediately creates an estate upon the death of the insured. Which of the following policies is characterized by a guaranteed minimum death benefit?
Variable life
K is looking to purchase Renewable Term insurance. Which of these types of Term insurance may be renewable?
level
What kind of premium does a Whole Life policy have?
level
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
When is the face amount paid under a Joint Life and Survivor policy?
upon death of the last insured
A term life insurance policy matures
upon the insured's death during the term of the policy
In order to sell a (n)____ Life policy, a producer is required to register with financial Industry Regulatory Authority (FINRA).
variable
