life policies
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
Which of the following types of policies pays a benefit if the insured goes blind?
AD&D
S is close to retiring and would like to purchase a policy that will yield greater gains than bonds, but will still protect the principal with a minimum level or risk. Which product would S be advised to purchase?
Equity index insurance
which of these is an element of a Variable Life policy?
a fixed, level premium
How long does the coverage normally remain on a limited-pay life policy?
age 100
a(n) ___________ term life policy is normally used when covering an insured's mortgage balance
decreasing
which of these types of policies may NOT have the automatic premium loan provision attached to it?
decreasing term
which of the following combination plans is designed to protect an insured from an unpaid mortgage balance upon premature death?
joint life
D needs life insurance that provides coverage for only a limited amount of time while also paying the lowest possible premium. What kind of policy is needed?
level term
Which of the following actions is NOT possible with a Universal Life policy?
premiums may be applied as a credit against income tax
under a graded premium whole life policy
the premium increases each year during the early years of the contract & remains the same after that time
when is the face amount paid under a Joint Life and Survivor policy
upon death of the last insured
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
a(n) _______ _______ life policy combines investment choices with a form of term coverage?
variable universal
Q would like to purchase $100,000 of permanent protection on his wife and $50,000 of Term coverage on himself under the same policy. What kind of policy should Q purchase?
whole life policy with other insured rider
an architecture firm would stand to lose a lot money in the event of the death of its project manager. which type of policy should the firm purchase on its project manager?
Key Person insurance
the cash value in a(n) ______ life policy may fluctuate to reflect changing assumptions regarding mortality cost, interest, and expense factors
Universal
S, age 40, is looking to buy a life insurance policy that will allow for increases or decreases in coverages as his needs change. The policy best suited for S would be:
Universal Life
what type of life insurance are credit policies issued as?
term
What kind of life insurance product covers children under their parent's policy?
term rider
