Types of life policies

Which of the following is INCORRECT regarding a $100,000 20-year level term policy?

At the end of 20 years, the policy's cash value will equal $100,000.

Which component increases in the increasing term insurance?

Death benefit Increasing term features level annual premiums and a death benefit that increases each year over the duration of the policy term.

Which of the following best describes annually renewable term insurance?

It is level term insurance. Annually renewable term is a form of level term insurance that offers the most insurance at the lowest cost.

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

Life Paid-up at age 65 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 the premium paying period that is limited, not the maturity.

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. What kind of policy is it?

Limited Pay Life

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

Which type of life insurance policy generates immediate cash value?

Single Premium

Which of the following would help prevent a universal life policy from lapsing?

Target premium

Which of the following is TRUE regarding the premium in term policies?

The premium is level for the term of the policy

When would a 20-pay whole life policy endow?

When the insured reaches age 100

Which of the following products will protect an individual from outliving their money?

annuity

A domestic insurer issuing variable contracts must establish one or more

separate accounts

Which of the following is called a "second-to-die" policy?

survivorship life

During partial withdrawal from a universal life policy, which portion will be taxed?

to interest

Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid

For 20 years or until death, whichever occurs first.