Types of Life Policies
At age 30, an applicant want to start an insurance program, but realizing that his insurance needs will likely change, he wants a policy that can be modified to accommodate those changes as they occur. Which of the following policies would most likely fit his needs?
Adjustable Life
Variable Whole Life insurance is based on what type of premium?
Level fixed
Which of the following would be the beneficiary in credit life insurance?
creditor
A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. In which of the following scenarios will the rider waive the payment of premium?
If the father is disabled for more than 6 months
Which of the following types of insurance covers the whole family in a single contract?
family policy
An adjustable Life policy owner can change which of the following policy features?
the coverage period
A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?
the insured's premiums will be waived until she is 21.
All of the following are true about variable EXCEPT A. Policy owners bear the investment risk. B. The premiums are invested in the insurer's general account. C. The minimum death benefit is guaranteed. D. The cash value is not guaranteed.
CORRECT: B. The premiums are invested in the insurer's general account.
All of the following entities regulate variable life policies EXCEPT A. The SEC. B. The Insurance Department. C. The Guaranty Association D. Federal government
CORRECT: C. The Guaranty Association
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.
Which of the following is called a "second-to-die" policy?
Survivorship life
What kind of policy issues certificates of insurance to insureds?
group insurance
