Questions and Answers
For variable products, underlying assets must be kept in a(n) ______.
separate account
How does the premium of a survivorship life policy compare to a joint policy?
higher
Which of the following statements is correct regarding a whole life policy?
What insurance policy only requires a payment of premium at its inception, provides protection for the life of the insured, and matures at the insured's age 100?
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If an individual purchased a $100,000 joint life policy on himself and his wife, how much will the wife receive from the policy after the husband dies?
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What does 'level' refer to in level term insurance?
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Which policy allows the policyowner to skip premium payments, provided there is enough cash value in the policy to cover the premium amount?
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What type of policy can be changed from one that doesn't accumulate cash value to one that does?
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What characteristic makes whole life permanent protection?
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A Straight Life policy's premium steadily decreases over time in response to its growing cash value.
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To sell variable life insurance policies, an agent must receive all of the following EXCEPT:
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If the annuity owner dies while the annuity is still in the accumulation stage, the beneficiary will receive the greater of the money paid into the annuity or the cash value.
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The annuity period may last for a lifetime of the annuitant.
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What age must the insured attain in order to receive the policy's face amount in a whole life policy?
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What type of life insurance policy requires premiums for only a specified number of years until the policy is paid up?
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Study Notes
Types of Life Policies
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Variable products require underlying assets to be maintained in a separate account.
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A survivorship life policy typically has a higher premium compared to a joint policy.
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The policyowner of a whole life policy is entitled to policy loans, reflecting the policy's cash value.
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A Single Premium whole life policy requires a one-time premium payment, provides coverage for the insured's life, and matures at age 100.
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In a Joint life policy, if one insured (such as a husband) dies, the surviving spouse receives the full death benefit of $100,000 upon the first death only.
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In level term insurance, "level" refers to the face amount, which remains constant throughout the term.
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Universal Life policies allow the policyowner to skip premium payments if there is enough cash value to cover them.
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A Convertible Term Policy can be transformed from a term policy without cash value accumulation to one that does.
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Whole life policies ensure permanent protection, providing coverage until the insured's death or reaching age 100.
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A Straight Life policy does not have premiums that steadily decrease; they remain level despite growing cash values.
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To sell variable life insurance policies:
- Agents must be registered with FINRA and possess a securities license and a life insurance license.
- SEC registration is not required.
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If an annuity owner dies during the accumulation stage, the beneficiary is entitled to the greater of the total contributions or the cash value of the annuity.
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The annuity period may continue for the lifetime of the annuitant, providing ongoing income.
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To receive the face amount of a whole life policy, the insured must reach the age of 100 years.
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A Limited-pay Life policy requires premiums to be paid for a specified number of years until the policy is considered paid up.
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Description
Test your knowledge on the various types of life insurance policies with this flashcard quiz. It covers essential terms and definitions related to survivorship, whole life, and variable products. Perfect for anyone studying insurance concepts and policies.
