Questions and Answers
The type of policy that can be changed from one that does not accumulate cash value to the one that does is a
An insurance policy that only requires a payment of premium at its inception, provides insurance protection for the life of the insured, and matures at the insured's age 100 is called?
Single premium whole life.
Which of the following is an example of a limited-pay life policy?
What would the premium be like in a survivorship life policy compared to the premium in a joint life policy?
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All of the following statements are correct regarding Credit Life Insurance EXCEPT
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The creditor is the policyowner in credit life insurance.
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A Universal Life Insurance policy is best described as a/an?
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Which of the following types of policies allows the policyowner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount?
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All of the following entities regulate variable life policies EXCEPT
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Annually renewable term insurance is level term insurance.
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Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid?
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To sell variable life insurance policies, an agent must receive all of the following EXCEPT?
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How can an employee obtain an individual policy after leaving a group life insurance plan?
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In a group life insurance policy, the employer may select all of the following EXCEPT?
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Which of the following is called a 'second-to-die' policy?
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Study Notes
Life Insurance Policies Overview
- Convertible Term Policy: A policy that can transition from a non-cash value to one that accumulates cash value.
- Single Premium Whole Life: Requires only one premium payment at inception, provides coverage until age 100.
- Limited-Pay Life Policy: Example includes Life Paid-up at Age 65; premiums are paid for a limited period.
Survivorship and Joint Life Policies
- Premiums for a Survivorship Life Policy are generally lower compared to Joint Life Policies.
Credit Life Insurance
- Beneficiaries do not receive benefits; instead, they go to the creditor, as the creditor is the policyowner.
Universal Life Insurance
- Defined as an Annually Renewable Term policy that includes a cash value account.
- Allows policyowners to skip premium payments if sufficient cash value is available.
Regulation of Policies
- Variable life policies are regulated by multiple entities, excluding the Guaranty Association.
- Selling variable life requires a license, but SEC registration is not mandatory.
Premium Payment Structures
- In a 20-Pay Whole Life policy, premiums must be paid for 20 years or until the insured's death, whichever occurs first.
- Annually Renewable Term insurance is characterized as level term insurance.
Transitioning from Group to Individual Policies
- Employees can convert their group life insurance to individual policies within 31 days of leaving their employer without needing proof of insurability.
Beneficiary Designations in Group Life Insurance
- The employer has the right to make selections concerning the policy, but cannot choose the beneficiary.
Survivorship Life Policies
- Known as "second-to-die" policies because they pay benefits after the second insured's death.
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Description
Test your knowledge about different life insurance policies with this quiz. From convertible term policies to single premium whole life policies, this quiz will help reinforce your understanding of key concepts in life insurance. Prepare to explore the various types that shape this crucial financial tool.
