Life Insurance Policies Quiz

<p>$110,000 (A)</p> Signup and view all the answers

<p>A Family Income Policy provides income for a period specified at purchase, while Family Maintenance provides income until a preselected period ends after death. (C)</p> Signup and view all the answers

<p>The ability to switch to permanent coverage without providing proof of insurability. (A)</p> Signup and view all the answers

<p>Provide proof of insurability. (A)</p> Signup and view all the answers

<p>Flexibility in premium payments and adjustable face amounts. (D)</p> Signup and view all the answers

<p>Someone needing short-term coverage who anticipates an increase in income later. (A)</p> Signup and view all the answers

<p>Adjustable Life Policy (A)</p> Signup and view all the answers

<p>The flexible nature of the policy accommodates varying financial situations. (C)</p> Signup and view all the answers

<p>Universal Life policy (D)</p> Signup and view all the answers

<p>Term life insurance provides pure death protection without a cash value component and expires after a set term. (D)</p> Signup and view all the answers

<p>The ability to adjust both premiums and death benefit amounts. (A)</p> Signup and view all the answers

<p>Holding valid FINRA and NASD securities registration. (A)</p> Signup and view all the answers

<p>A death benefit is only paid if the insured dies during the active policy term; otherwise, no benefits are paid. (C)</p> Signup and view all the answers

<p>Limited pay policies require premium payments for a specified duration only. (A)</p> Signup and view all the answers

<p>Mutual funds, stocks, and bonds (C)</p> Signup and view all the answers

<p>The policy expires, and no death benefit is paid. (C)</p> Signup and view all the answers

<p>It features a level face amount and level premiums throughout the policy period. (D)</p> Signup and view all the answers

<p>The policy pays out the face amount to the insured. (D)</p> Signup and view all the answers

<p>Lifetime coverage and cash value accumulation. (B)</p> Signup and view all the answers

<p>For individuals needing temporary, high coverage at a lower cost for a specific period. (B)</p> Signup and view all the answers

<p>Term life insurance's affordability can allow for larger policies compared to other types of life insurance. (B)</p> Signup and view all the answers

<p>By distributing the cost evenly across the insured's lifetime. (C)</p> Signup and view all the answers

<p>$1,000,000, as the death occurred within the policy term. (A)</p> Signup and view all the answers

<p>Both build long-term value over time and stay with you for life once fully paid. (B)</p> Signup and view all the answers

<p>The premiums remain constant regardless of age or health changes. (C)</p> Signup and view all the answers

<p>The policy's coverage is only temporary and does not build cash value. (C)</p> Signup and view all the answers

<p>A level death benefit and accumulation of cash value over time. (C)</p> Signup and view all the answers

<p>Coverage remains in force until age 100 or the insured's death, whichever occurs first. (B)</p> Signup and view all the answers

<p>Investing predominantly in fixed income securities with a portion linked to a stock index. (A)</p> Signup and view all the answers

<p>EIUL policies offer returns linked to a stock index while protecting against market downturns. (C)</p> Signup and view all the answers

<p>It requires the beneficiary to have a legitimate financial relationship with the insured. (C)</p> Signup and view all the answers

<p>They violate the insurable interest requirement, allowing investors to profit from someone's death. (A)</p> Signup and view all the answers

<p>Monthly payments or other living benefits during their lifetime. (A)</p> Signup and view all the answers

<p>A Stranger (Investor) Originated Life Insurance (S(I)OLI) policy. (D)</p> Signup and view all the answers

<p>Access to policy loans. (B)</p> Signup and view all the answers

<p>By adding the selected coverage amount to the policy's account value. (D)</p> Signup and view all the answers

A policy where the death benefit decreases over time, matching loan balance decreases.

A policy providing a death benefit that increases annually, by a fixed amount or percentage.

Insurance allowing conversion from term to permanent without proof of insurability.

To ensure loans are repaid upon the debtor's death before full repayment.

The amount the insurer pays upon death; can be constant or change over time.

Affordable pure life insurance with no cash value, providing death protection.

A benefit is paid only if the insured dies within the policy period.

The amount the insurance company pays upon the insured's death.

Term insurance does not build cash value over time unlike whole life policies.

A term life insurance policy valid for 10 years, offering substantial coverage.

Insurance with a constant face amount and premium throughout the term.

Term insurance ends after a specified time and pays no benefits if the insured outlives it.

Term life insurance is the least costly option for significant death benefits.

A policy providing coverage for the insured's entire life with fixed premiums and cash value accumulation.

Consistent payment amounts required for the duration of the insurance coverage, often until death.

The savings component of whole life insurance that grows over time and can be borrowed against.

The amount paid to beneficiaries upon the insured's death or when the policy matures at age 100.

A policy with lifetime coverage, level premiums, and cash value that pays the face amount at age 100 if not claimed.

A whole life insurance policy with premiums paid for a limited time, but coverage lasts until age 100 or death.

The event when a whole life policy reaches age 100, triggering payout if no death has occurred.

Different types of whole life insurance that vary in premium payment structures and lengths.

Provides monthly income to beneficiaries until a set period ends, then pays lump sum.

Offers regular income from the insured's death for a predetermined period.

Allows flexibility in premiums and face amounts to adjust to financial needs.

Payment occurs only after the last insured's death.

A one-time payment made after the specified income period ends.

A policy allowing flexible premiums and death benefits based on financial changes.

Insurance with adjustable premiums and death benefits, allowing cash value growth through investments.

Profits earned on the cash value of a life insurance policy, often used for adjustments.

A type of insurance where cash value and death benefits fluctuate based on underlying investments.

A requirement for producers to sell variable life insurance due to its security features.

A policy combining life insurance with investment linked to an equity index, offering minimum interest and tax-deferred growth.

Typically, 80% to 90% of premiums go into fixed income, with the rest linked to specific stock indices.

EIUL protects against losses while aiming to outpace inflation via investments.

The death benefit in life policies is based on the coverage amount and policy's account value.

Policy where an investor profits from the death of someone without insurable interest, making it illegal.

The investor acts as policyowner, payor, and beneficiary, profiting from the insured's death.

In exchange for insurance, the insured may receive monthly payments during their life.

S(I)OLI policies are illegal due to bypassing insurable interest requirements.