Nevada Life: Day 2

the insured is also the policy owner of a whole life policy. what age must the insured attain in order for the policy to mature and receive the policy's cash value

100

a straight life policy has what type of premium

a level annual premium for the life of the insured

a type of annuity that begins payment to the annuitant within one year

immediate annuity

what is true regarding the premium of a whole life policy

remains level

the insurance component of a universal life policy is wha type of insurance

annual renewable term

whose life expectancy is taken into consideration in an annuity

annuitant

a contract that can provide income for specific period of Yeats or for life and protect against outliving your money is a/an

annuity

a level term, level premium policy is a type of policy where

both he coverage and the premiums stay level

what characteristic makes whole life permanent protection

coverage till age 100

which of the following is not a term for the period of time during which the annuitant receives income - annuitization period -pay-out period - liquidation period - depreciation period

depreciation period

what does level, decreasing and increasing refer to in term insurance

face amount

in whole life insurance which of the following terms describes features such as cash values and loan provisions

living benefits

which universal life option has a level death benefit and a required IRS corridor between the face amount and the cash value?

option A

which universal life option has an increasing death benefit

option b

the cash value of a life insurance policy belongs to which of the following - policyowner - insured - insurer - beneficiary

policy owner

WHICH of the following best describes an annually renewable term insurance - neither the premium not the death benefit is affected by the insured's age - it provides an annually increasing death benefit - it is level term insurance - it requires proof of insurability at each renewal

it is a level term insurance

which of the following is true regarding the accumulation period of an annuity

it is a period during which the payments into the annuity grow tax deferred

which of the following is true regarding joint and survivorship life polices? - it pays a death benefit after the last insured's death - its designed to insure two or more lives and the premium is based on the average age - it is a form of group life insurance - it is used to offset the liability of the estate tax upon the insured's death

it is designed to insure two or more lives and the premium is based on the average age

all other factors being equal how would the premium in a survivorship life policy compare to the premium in a joint life policy

it will be lower

a life insurance policy covering the lives of two or more people designed to pay proceeds after the first person dies is called

joint life

a deferred annuity can be purchased with a single or periodic premium which two terms are associated with periodic premium payment option for annuities - immediate or deferred - level or flexible - fixed or variable - individual or group

level or flexible

an insured has a life insurance policy that requires him to pay premiums for a specified number of years until the policy is paid and continues to provide protection after the premium paying period has ended is called a

limited pay policy

a life insurance policy covering the lives of two or more people designed to pay proceeds only after the last person dies is called

survivorship life

all of the following are parties to an annuity except

the agent

all of the following are true regarding a partial surrender on a universal life policy EXCEPT - it is not considered a loan - the amount will be deducted from the face amount - the amount needs to be paid back with interest - a partial surrender is allowed on a universal life policy

the amount needs to be paid back with interest

what is annually renewing in a universal policy

the annually increasing cost of insurance

which of the following statements is true regarding an annuity

the annuitant must be a natural person

the time period during which the annuitant starts to receive payment from an annuity is called

the annuity period

if the annuitant dies during the accumulation period, who will receive the annuity benefits

the beneficiary

all of the following are characteristics of variable life policies except - it is regulated by the SEC and FINRA - there is not guaranteed minimum death benefit - there is no guaranteed interest rate - the cash value is guaranteed

the cash value is guaranteed

HOW are premiums and coverage effected in a decreasing term policy?

the coverage decreased gradually but the premiums stay the same

what is true regarding an increasing term policy

the coverage increases gradually but the premiums stay the same

all of the following are examples of a limited pay policy except - life paid up at 65 - 20 pay whole life - 20 year term - life paid up at 50

20 year term

an agent selling variable annuities must be registered with...

FINRA

if a term life policy is convertible, that means that at the end of the policy term, the policy owner may convert coverage to...

a whole life or permanent policy only

during which of the following annuity periods does an insured make monthly contributions to the annuity for retirement purposes

accumulation period

which type of flexible policy allows the insured to change the amount of death benefit, premium or the type of coverage as their needs change

adjustable life

Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be

adjusted to the insured's age at the time of renewal or conversion

the most common type of whole life insurance where premiums are payable over the whole life of the insured to age 100 is called

continuous premium (straight) life

what provision allows the policy owner at the end of the term the right to change the policy to a permanent insurance policy without evidence of insurability?

convertible provision

When the insured purchased a new home, he wanted to purchase a life insurance policy that would protect his family against losing it should he die before the mortgage was paid. Which of the following policies is best suitable for that need?

decreasing term ( good for mortgage and loans )

a type of annuity that begins payment to the annuitant after one year from the date of purchase

deferred annuity

what is the best way to describe the premium of a universal life policy

flexible

which of the following is NOT a type of whole life insurance - increasing term - single premium - straight line - limited payment

increasing term

what are the two components of a universal policy

insurance and cash amount

which of the following is a characteristic of an equity indexed annuity

interest rates are often associated with a stock index like the S&P 500

with a whole life policy, the death benefit

is fixed a guaranteed

what is considered fix in a Indexed type investment

it has a fix guaranteed minimum interest rate

ALL of the following statements about term insurance are correct except - pays a benefit only if the insured dies during a specified period - premiums can be adjusted upon the policyowner's request - can be renewed and converted - has no cash value

premiums can be adjusted upon the policyowners request

what provision allows the policy owner at the end of the term the right to continue converge for another term without proof of insurability?

renewable provision

ALL of the following are types of term insurance, depending on how the face amount changes during the policy term, except - increasing term - renewable term - decreasing term - level term

renewable term

an annually renewable term policy

renews each year with an increased premium and the face amount stays the same

equity indexed annuities

seek higher returns

which two terms are associated directly with the way an annuity is funded

single payments or periodic payments

which type of life insurance policy can be purchased with a one time lump sum payment and generates immediate cash value?

single premium

all of the following entities regulate variable life policies except - the guaranty association - federal government - the SEC - the insurance department

the guaranty association

who bears the investment risk in variable life insurance products

the policy owner

which of the following statements is correct regarding a whole life policy? - cash values are not guaranteed - the policy premium is based on the attained age - the death benefit may increase or decrease during the policy period - the policy owner is entitled to policy loans

the policy owner is entitled to policy loans

which of the following best describes target premium in a universal life policy

the recommended amount to keep the policy in force throughout its life time

in the variable life policy, where are premiums deposited after expenses are deducted?

the separate account

a universal life policy allows the policy owner to skip paying a premium and the policy will not lapse as long as

there is enough cash value in the policy to cover the premium account

a policy that is a combination of annually renewable term and cash value that grows at current interest rates is

universal life

which type of policy has two death benefit options

universal life

selling which of the following policies would require both a life license and a securities license

variable life

the main difference between immediate and deferred annuities is

when the income payments begin

a life insurance policy that is a combination of a decreasing term with cash value

whole life insurance policy

an immediate annuity has no accumulation period which means it can only be purchased

with a single premium