Types of Policies

Group life insurance are written as what type of policy?

Annually renewable term

Question 23 of 50 The death protection component of a universal life policy is expressed as what type of coverage?

Annually renewable term

Question 34 of 50 In variable universal life insurance, to what policy component does the term 'variable' refer?

Cash value and death benefit

Question 33 of 50 An individual has just borrowed $10,000 on a 5-year note from his bank. The note is due in installments. What type of life insurance policy would be best suited to this situation?

Decreasing term

Question 11 of 50 What does "level" refer to in level term insurance?

Face amount

Question 40 of 50 Whole life insurance policies mature when the insured reaches the age of 100. If the owner of a whole life policy (the insured) dies at age 80, and there are no outstanding loans on the policy, what portion of the death benefit will be paid to the beneficiary?

Full death benefit

Question 38 of 50 Universal life policies have two types of interest rates. What are they?

Guarenteed and current

Question 27 of 50 What type of whole life insurance policy generates immediate cash value?

Single premium whole life

Question 46 of 50 Regarding taxation, how does the cash value of a universal life policy accumulate?

Tax deferred

Question 36 of 50 What type of life insurance policy offers pure death protection?

Term

Question 49 of 50 In annually renewable term policies, what is the annual premium based upon?

The insureds attained age

Question 10 of 50 When does an adjustable life policy accumulate cash value?

When the premiums paid are more than the cost of the policy

Question 4 of 50 If an insured terminates membership in group life insurance, to what type of insurance can the insured convert the coverage?

Whole life

Question 8 of 50 Who is insured under a juvenile life policy?

A minor

Question 9 of 50 What is the main advantage of converting from group life insurance to individual coverage?

Evidence of insurability not required

Question 29 of 50 What are the characteristics of the group that underwriters will consider before issuing a group life policy?

Group's purpose, size, financial strength and turnover

Question 5 of 50 During partial withdrawal from a universal life policy, which portion, if any, will be taxed?

Interest earned on cash withdrawn

Question 48 of 50 A policy states that it will pay a specified face amount if the insured dies during the 20 year premium-paying period and nothing if death occurs after the 20 year period. What type of policy is this?

20 year level term

Question 18 of 50 A policyowner borrowed a portion of cash value from his whole life policy. If the loan is not repaid, how will that affect the death benefit to the beneficiary?

Amount of loan will be subtracted from death benefit

Question 24 of 50 If an employee wants to join group life insurance coverage outside of the open enrollment period, what would the employee have to provide?

Evidence of insurability

Question 35 of 50 When the amount of insurance is increased in an adjustable life policy, what will the insurer require from the insured?

Evidence of insurability

Question 30 of 50 A whole life policy that requires that the policyowner only pays premiums for a specified number of years is known as what kind of policy?

Limited pay whole life

Question 6 of 50 What are the "living benefits" of whole life insurance?

Loan values

Question 50 of 50 What universal life option has a gradually increasing cash value and a level death benefit?

Option A

Question 39 of 50 What are the death benefit options in universal life policies?

Option A - level death benefit, and Option B - increasing death benefit

Question 28 of 50 What is the purpose of establishing the target premium for a universal life policy?

Prevent the policy from lapsing

Question 47 of 50 In term policies, what happens to the premium throughout the term of the policy?

Remains level

Question 42 of 50 What elements of an adjustable life policy can be changed by the policyowners?

The amount and payment period of the premium, the face amount, and the period for protection

Question 1 of 50 In what type of life insurance policies can the policyowner skip premium payments without the policy lapsing?

Universal Life

Question 2 of 50 Between adjustable life and universal life policies, which one provides more flexibility to the policyowner?

Universal life