Questions and Answers
What kind of special need would a policyowner require with an Adjustable Life insurance policy?
As financial needs and objectives change, the policyowner can make adjustments to the premium and/or face amount.
A variable insurance policy guarantees a return on investment accounts.
False
Term insurance has which of the following characteristics?
With term insurance, the policy expires at the end of the policy period.
Which of the following features of a group Term Life policy enables an individual to leave the group and continue his or her insurance without providing evidence of insurability?
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What type of life insurance gives the greatest amount of coverage for a limited period of time?
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What kind of $10,000 policy should T purchase to ensure funds are available in 10 years?
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What does a Face Amount Plus Cash Value Policy promise to pay at the insured's death?
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What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time?
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What kind of life policy is best for protecting a 15-year mortgage?
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Which insurance product can cover the children of a person who is covered by a whole life policy?
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What kind of premium does a Whole Life policy have?
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Which provision allows the policyowner to change a term life policy to a permanent one without providing proof of good health?
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If G purchased a Family Income policy with a 20-year rider period, how long would G's family receive an income if G dies at age 50?
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How can Variable Whole Life Insurance be described?
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Which type of life insurance allows the policyowner to have level premiums and choose from a selection of investment options?
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Study Notes
Types of Insurance Policies
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Adjustable Life Insurance: Allows policyowners to adjust premiums and face amounts as financial needs evolve over time.
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Variable Insurance Policy: Does not guarantee returns on investment accounts; policyowners assume investment risks and there are no promises for interest rates or cash values.
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Term Insurance Characteristics: Provides coverage for a specified period and expires when the term ends, making it a temporary solution.
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Group Term Life Policy: Features a Conversion Privilege that enables individuals to continue coverage without evidencing insurability after leaving the group.
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Greatest Coverage for Limited Time: Term insurance is the most cost-effective option for providing high coverage amounts for a short duration.
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Ten-Year Endowment Policy: Suitable for those needing a guaranteed amount, such as $10,000 in 10 years, for specific future expenses like home repairs.
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Face Amount Plus Cash Value Policy: Promises a payout that includes both the face amount of insurance and the cash value upon the insured's death.
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Decreasing Term Policy: Features an adjustable death benefit that reduces over time and is intended for specific time-limited needs.
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Protection for 15-Year Mortgage: Best protected by a 15-year decreasing term life policy, suited to the loan duration and balancing costs.
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Child Coverage Through Whole Life Policy: A child term rider can provide life insurance coverage for the children of the policyholder.
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Whole Life Policy Premiums: Characterized by level premiums that remain constant throughout the policy duration.
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Conversion Provision: Allows policyowners to convert a term life policy to a permanent policy without needing proof of good health.
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Family Income Policy: Provides a specified income for a set period following the insured's death; for example, a policy with a 20-year rider would pay income for 10 years if the insured dies shortly after starting the policy.
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Variable Whole Life Insurance: Combines features of both insurance and investment products, giving policyowners options to invest.
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Variable Life Insurance: Offers a combination of level premiums with the ability to choose various investment options, allowing for growth potential alongside insurance coverage.
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Description
This quiz focuses on different types of insurance policies, including Adjustable Life and Variable insurance. Learn how these policies adjust to changing financial needs and the implications of investment returns. Perfect for insurance studies or finance classes.
