Quiz 2

Ace your homework & exams now with Quizwiz!

The death protection component of universal life insurance is always...

Annually renewable term -a universal policy insurance has two components an insurance component and a cash account

The death benefit in a variable universal life policy

Depends on the performance of a separate account. The death benefit is not fixed and may increase or decrease over the life of the policy depending on the investment performance of the underlying sub account

What policy component decreases in decreasing term insurance?

Face amount

Which of the following is an example of a limited pay life policy?

Limited pay whole life premiums are all paid by the time the insured reaches age 65. The policy endows when the insured turns 100. It is a premium paying period that is limited, not the maturity.

Which of the following is not true regarding a variable universal life policy?

The death benefit is fixed

An individual has just borrowed $10k from his bank on a 5 year installment loan requiring monthly payments. What type of life insurance policy would be best suited to the situation?

A decreasing term policy face amounts of debt is reduced

A married couple owns a permanent policy which covers both of their lives and pays the death benefit upon he death of the first insured which policy is that?

Joint life policy (covers the lives of two insurers rates are blended upon the death of the first insured, the policy ends)

Licensing requirements for someone who sells variable universal life insurance.

Life insurance and securities

Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?

Limited pay whole life. Premium payment will cease at her age 65, but coverage will continue to her death or age 100. well suited for those insured who do not want to be paying premiums beyond a certain point in time.

Which of the following features of the indexed whole life policy is not fixed?

Premium death benefit, policy period, cash value growth


Related study sets

Chapter 57: Management of Patients with Burn Injury

View Set

AP Environmental - Fossil Fuels and Nuclear Energy

View Set

TX Prin. of Real Estate ONE Ch. Four 4.2

View Set

Topic 1 - Introduction to strategic Knowledge Management

View Set

Gas Exchange Mastery Quiz RSNG 1128

View Set

Search Engine Optimization (MKTG470)

View Set

Business Law Test 1: Chapters 42, 1, 4, 5, 6

View Set

Histoire Chap 3 : Seconde guerre mondiale

View Set

Test 4: Lesson 1. How to Solve basic Algebraic Equations

View Set