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A single premium policy means a policy:
A single premium policy means a policy:
A fixed amount added to the premium of a given policy regardless of policy size is known as:
A fixed amount added to the premium of a given policy regardless of policy size is known as:
To be able to calculate the required premiums for a given policy, the agent must know the applicant's:
To be able to calculate the required premiums for a given policy, the agent must know the applicant's:
To calculate premiums for the other modes of premium payment, the annual premium is:
To calculate premiums for the other modes of premium payment, the annual premium is:
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A father enters into a life insurance contract on behalf of his child. In this case, the father is the:
A father enters into a life insurance contract on behalf of his child. In this case, the father is the:
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The convertible feature of a term insurance policy provides that the policy may be:
The convertible feature of a term insurance policy provides that the policy may be:
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Within two years of buying a life insurance policy, you are accidentally killed when your car hits a tree. In these circumstances, the insurance company will:
Within two years of buying a life insurance policy, you are accidentally killed when your car hits a tree. In these circumstances, the insurance company will:
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When explaining dividends, the following information must be supplied:
When explaining dividends, the following information must be supplied:
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Part of the premium paid by a policyholder is invested by the insurance company. In premium computation, this factor is known as:
Part of the premium paid by a policyholder is invested by the insurance company. In premium computation, this factor is known as:
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The parties involved in life insurance contract are the:
The parties involved in life insurance contract are the:
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The fundamental advantage of the use of insurance as a means of meeting economic losses is that through insurance these losses are:
The fundamental advantage of the use of insurance as a means of meeting economic losses is that through insurance these losses are:
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Life insurance contributes directly to the welfare and progress of the country by:
Life insurance contributes directly to the welfare and progress of the country by:
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The number of years that persons at a given age will live on the average as shown by the mortality table is called:
The number of years that persons at a given age will live on the average as shown by the mortality table is called:
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An insurance plan which offers both protection and savings is called:
An insurance plan which offers both protection and savings is called:
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A man with moderate means can have maximum protection possible through:
A man with moderate means can have maximum protection possible through:
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Mr. Juan Valdez wants a policy which will entitle him to receive dividends yearly. What will you recommend to Mr. Valdez?
Mr. Juan Valdez wants a policy which will entitle him to receive dividends yearly. What will you recommend to Mr. Valdez?
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Which of the following can give the longest protection?
Which of the following can give the longest protection?
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An individual, at age 35, purchases a policy under which he will in 20 years receive the face amount of the policy himself if he is still alive at that date. This policy is obviously a:
An individual, at age 35, purchases a policy under which he will in 20 years receive the face amount of the policy himself if he is still alive at that date. This policy is obviously a:
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In a 20 Life policy:
In a 20 Life policy:
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A participating plan entitles the policyowner to receive a return of excess premium. Such is termed as:
A participating plan entitles the policyowner to receive a return of excess premium. Such is termed as:
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Mrs. Rose Cortez owns a policy which does not provide for the build up of cash values and whose premiums remain level. Mrs. Cortez owns:
Mrs. Rose Cortez owns a policy which does not provide for the build up of cash values and whose premiums remain level. Mrs. Cortez owns:
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Study Notes
Life Insurance Policy Types and Features
- A single premium policy requires only one premium payment, not multiple annual payments.
- A policy fee is a fixed amount added to a premium, irrespective of the policy size.
- To calculate required premiums, knowledge of the applicant's age, chosen plan, and desired face amount is essential.
- For other premium payment modes, the annual premium is multiplied by a conversion factor corresponding to the payment mode.
Contractual Parties and Responsibilities
- In a life insurance contract where a father insures his child, the father is termed the applicant-owner.
- Life insurance contracts primarily involve the insurance company and the insured.
Claim Settlements and Benefits
- If a policyholder dies accidentally within two years of purchasing a policy, the insurance company typically pays the face amount.
- Insurance dividends are not guaranteed; policyholders should be informed of this fact.
Financial Aspects of Life Insurance
- A portion of the premium paid is invested, influencing premium calculations, known as interest.
- The advantage of insurance lies in spreading economic losses over a larger population.
Insurance Contributions and Measurements
- Life insurance contributes to national welfare by accumulating capital, relieving community burdens, and encouraging future provisions.
- Life expectancy represents the average number of years individuals of a certain age are predicted to live, as determined by mortality tables.
Types of Insurance Plans
- An insurance plan that includes both protection and savings is labeled a Permanent Plan.
- For maximum protection on a budget, Term Insurance is the most effective choice.
- A participating plan entitles policyholders to receive dividends.
Policy Specifics and Options
- The Ordinary Life plan offers the longest duration of protection.
- A 20 Yr. Endowment policy allows payment of benefits if the insured survives the term.
- A 20 Life policy provides protection until age 100, with premium payments made only for 20 years.
Additional Policy Information
- The dividends from a participating plan return excess premium to the policyowner.
- A Level Term policy does not build cash values and features consistent premium amounts.
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Description
Test your knowledge on fundamental insurance concepts with this quiz. Questions cover topics such as premium types and policy features. Perfect for beginners looking to enhance their understanding of insurance policies.
