Types of Life policies
A straight Life policy has what type of premium?
A level annual premium for the life of the insured
The minimum interest rate on an equity indexed annuity is often based on
An index like Standard & Poor's 500
Which of the following is NOT true regarding an annuity certain?
Benefits stop at the annuitant's death
Which policy component decreases in decreasing term insurance?
Face amount
All of the following statements are true regarding installments for a fixed period annuity settlement option EXCEPT
It is a life contingency option.
Which Universal Life option has a gradually increasing cash value and a level death benefit?
Option A
Which universal life option has a gradually increasing cash value and a level death benefit?
Option A
In a survivorship life policy, when does the insurer pay the death benefit?
Upon the last death
Which of the following products require a securities license?
Variable Annuity
The Least expensive first year premium is found in which of the following policies?
annually renewable term
Which of the following is a short term annuity that limits the amounts paid to a certain fixed period or until a certain fixed amount is liquidated?
annuity certain
Which of the following is a short term annuity that limits the amounts paid to a certain fixed period or until a certain fixed amount is
Annuity certain
Variable whole life insurance is based on what type of premium?
Level fixed
A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy
Required a premium increase each renewal.
The President of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements are true?
The annuitant must be a natural person
The type of policy that can be changed from one that does not accumulate cash value to the one that does is a
convertible term policy
All of the following statements are true regarding installments for a fixed amount EXCEPT
The payments will stop when the annuitant dies.
The form of life annuity which pays benefits throughout the lifetime of the annuitant and also guarantees payment for a minimum number of years called
Life income with period certain
An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term?
The insured may renew the policy for another 10 years, but at at a higher premium rate.
Which of the following is not true regarding an annuity certain?
Benefits stop at the annuitant's death.
Which of the following best describes annually renewable term insurance?
It is level term insurance
What form of the annuity settlement options provides to an annuitant for the rest of the annuitants life and ceases at the annuitants death?
Pure life
The Annuitant dies while the annuity is still in the accumulation stage. Which of the following is TRUE?
The beneficiary will receive the greater of the money paid into the annuity or the cash value.
The annuitant dies while the annuity is still in the accumulation stage. Which of the following is TRUE?
The beneficiary will receive the greater of the money paid into the annuity or the cash value.
An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up.
Limited-pay life
The premium of a survivorship life policy compared with that of a joint life policy would be
lower
Which of the following best defines target premium in a universal life policy ?
The recommended amount to keep the policy in force throughout its lifetime
If an agent wishes to sell variable life policies, what license must the agent obtain?
securities
What characteristics make whole life insurance permanent?
Coverage until death or age 100
What is another name for interest sensitive whole life insurance?
Current assumption life
Under which installments option does the annuitant select the amount of each payment, and the insurer determines how long they will pay benefits
fixed amount
An adjustable Life policy owner can change which of the following policy features?
the coverage period
