Types of insurance policies
Which of the following is considered an element of a variable life policy
Underlying equity investment
Under a Graded Premium policy, the premiums
are lower during the policy's early years
Under an interest sensitive whole life policy
cash values are determined by interest rates
When a life insurance policy exceeds certain IRS table values, the result would create which of the following?
Modified Endowment Contract (MEC)
Which is true concerning a Variable Universal Life policy?
Policyowner controls where the investment will go and selects the amount of the premium payment
T would like to be assured $10,000 is available in 10 years to replace a roof on his house. What kind of $10,000 policy should T purchase?
Ten-Year Endowment
What term life policy is normally used when covering an insured's mortgage balance?
decreasing
A variable insurance policy
does not guarantee a return on its investment accounts
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 about a whole life policy is true
Cash value may be borrowed against
What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time?
Decreasing term
Which type of policy is considered to be overfunded, as stated by IRS guidelines?
Modified Endowment Contract
Variable Life products require a producer to
hold a Life Insurance license and a Securities license
What type of life insurance are credit policies issued as?
term
The amount of coverage on a group credit life policy is limited to
the insured's total loan value
