Podcast
Questions and Answers
What is an example of a limited-pay life policy?
What is an example of a limited-pay life policy?
- Life Paid-up at age 75
- Life Paid-up at age 60
- Life Paid-up at age 65 (correct)
- Life Paid-up at age 70
What statement about group life is correct?
What statement about group life is correct?
- The cost of coverage is based on the size of the group.
- The cost of coverage varies only by age.
- The cost of coverage is based on the ratio of men and women in the group. (correct)
- The cost of coverage is the same for all individuals.
All of the following entities regulate variable life policies except:
All of the following entities regulate variable life policies except:
- Guaranty Association (correct)
- SEC
- Federal Government
- Insurance Department
All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy?
All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy?
Which Universal Life option has a gradually increasing cash value and a level death benefit?
Which Universal Life option has a gradually increasing cash value and a level death benefit?
All other factors being equal, the least expensive first-year premium payment is found in:
All other factors being equal, the least expensive first-year premium payment is found in:
What part of an indexed whole life policy is NOT fixed?
What part of an indexed whole life policy is NOT fixed?
Which is classified as a traditional level premium contract?
Which is classified as a traditional level premium contract?
Concerning juvenile life insurance, what is true?
Concerning juvenile life insurance, what is true?
15 sky divers wanted cheaper life insurance so they got together. They applied and were rejected for group life. Why?
15 sky divers wanted cheaper life insurance so they got together. They applied and were rejected for group life. Why?
To sell variable life insurance policies, an agent must receive:
To sell variable life insurance policies, an agent must receive:
Which option allows the beneficiary to receive the death benefit and cash value upon the death of the insured?
Which option allows the beneficiary to receive the death benefit and cash value upon the death of the insured?
When an employee terminates coverage under the group, how long does the coverage continue?
When an employee terminates coverage under the group, how long does the coverage continue?
Which would have an IRS-required gap between cash value and death benefit?
Which would have an IRS-required gap between cash value and death benefit?
Which type of insurance policy generates immediate cash value?
Which type of insurance policy generates immediate cash value?
Which factors aren't considered when underwriting group insurance?
Which factors aren't considered when underwriting group insurance?
In group life insurance policy, who may not select the beneficiary?
In group life insurance policy, who may not select the beneficiary?
When an insured renews a term 5 years later, what happens to the premium?
When an insured renews a term 5 years later, what happens to the premium?
What is false regarding credit life insurance?
What is false regarding credit life insurance?
In a survivorship life policy, when does the insurer pay the death benefit?
In a survivorship life policy, when does the insurer pay the death benefit?
What did a man discover about his 100k annually renewable term policy?
What did a man discover about his 100k annually renewable term policy?
Which best describes annually renewable term life insurance?
Which best describes annually renewable term life insurance?
Which employees under a group plan are allowed to convert to individual insurance?
Which employees under a group plan are allowed to convert to individual insurance?
When would a 20-pay whole life policy endow?
When would a 20-pay whole life policy endow?
Who is the beneficiary in credit life insurance?
Who is the beneficiary in credit life insurance?
A return of premium term life policy is written as what type of coverage?
A return of premium term life policy is written as what type of coverage?
In an adjustable life policy, what cannot be done?
In an adjustable life policy, what cannot be done?
All are correct regarding credit life insurance except:
All are correct regarding credit life insurance except:
Which statement is not true regarding a straight life policy?
Which statement is not true regarding a straight life policy?
Which is not true regarding a decreasing term policy?
Which is not true regarding a decreasing term policy?
Credit life insurance insures the life of whom?
Credit life insurance insures the life of whom?
If a life policy increases significantly in face amount or death benefit when the insured reaches a specific age, which policy is it?
If a life policy increases significantly in face amount or death benefit when the insured reaches a specific age, which policy is it?
Study Notes
Limited-Pay Life Policies
- An example is the Life Paid-up at age 65, which requires premiums to be paid only until age 65.
Group Life Insurance
- Cost is influenced by the ratio of men to women within the insured group.
Regulation of Variable Life Policies
- Regulated by the Federal Government, SEC, and Insurance Department; not by the Guaranty Association.
Premiums in Survivorship and Joint Life Policies
- A survivorship life policy generally has a lower premium compared to a joint life policy.
Universal Life Options
- Option A features a gradually increasing cash value while maintaining a level death benefit.
First-Year Premiums
- The least expensive first-year premium is typically found in annually renewable term insurance.
Indexed Whole Life Policies
- Cash value growth is variable and depends on market performance, unlike the fixed components of the policy.
Traditional Level Premium Contracts
- Straight Life insurance is classified as a traditional level premium contract.
Juvenile Life Insurance
- Juvenile Life is a limited payment policy on minors, with the parent as the applicant.
Group Life Insurance Rejection
- A group of skydivers was rejected for group life as their purpose was solely to obtain insurance coverage.
Selling Variable Life Insurance
- Agents need a securities license, life insurance license, and FINRA registration, but not SEC registration.
Death Benefit Options
- Option B allows the beneficiary to receive both the death benefit and cash value upon the insured's death.
Group Coverage Continuation
- Coverage remains in force for 31 days after an employee terminates their group insurance.
IRS Requirements for Cash Value
- Universal Life Option A must maintain a gap between cash value and death benefit as per IRS regulations.
Immediate Cash Value Policies
- Single Premium Whole Life policies generate immediate cash value.
Group Insurance Underwriting
- Underwriting does not consider the insured's medical history in group insurance.
Beneficiary Selection in Group Life
- Employers cannot select beneficiaries; employees must be allowed to choose.
Term Insurance Renewals
- Premiums increase upon renewing a term policy after a period, reflecting the insured's age.
Credit Life Insurance Benefits
- Benefits are paid to the creditor, not the borrower's beneficiary.
Survivorship Life Policy Death Benefit Payment
- The death benefit is paid out upon the last death in a survivorship life policy.
Renewable Term Policy Characteristics
- Annually renewable term policies require premium increases with each renewal due to the insured's age.
Annually Renewable Term Insurance Definition
- It is characterized as level term insurance.
Employee Conversion Rights in Group Plans
- Employees insured for over five years are allowed to convert to individual insurance.
Endowment Age for Whole Life Policies
- A 20-pay whole life policy will endow at age 100.
Credit Life Insurance Beneficiary
- The beneficiary of credit life insurance is the creditor.
Return of Premium Term Life Policy
- It is described as increasing coverage.
Adjustable Life Policy Limitations
- Policyholders cannot change the investment type within an adjustable life policy.
Misconceptions about Credit Life Insurance
- It's incorrect to claim benefits are paid to the borrower's beneficiary.
Straight Life Policy Characteristics
- It is false that premiums of a straight life policy decrease over time; they remain steady.
Decreasing Term Policy Misunderstandings
- The premium amount does not decrease, it remains constant throughout the policy duration.
Credit Life Insurance Definition
- It insures the life of a debtor against outstanding debts.
Jumping Juvenile Policy
- This type of policy increases the face amount or death benefit at a specific age of the insured.
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Description
Test your knowledge on key concepts from Chapter 3 of insurance studies. This quiz covers various aspects of life policies, including limited-pay life policies and regulations of variable life insurance. Challenge yourself with these flashcard questions to reinforce your understanding.
