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Questions and Answers
What type of life insurance are credit policies issued as?
What type of life insurance are credit policies issued as?
Term
Which provision allows the policyowner to change a term life policy to a permanent one without providing proof of good health?
Which provision allows the policyowner to change a term life policy to a permanent one without providing proof of good health?
Conversion
What kind of life policy either pays the face value upon the death of the insured or when the insured reaches age 100?
What kind of life policy either pays the face value upon the death of the insured or when the insured reaches age 100?
Whole Life
All of these statements about Equity Indexed Life Insurance are correct, EXCEPT:
All of these statements about Equity Indexed Life Insurance are correct, EXCEPT:
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What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies?
What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies?
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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?
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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Term insurance has which of the following characteristics?
Term insurance has which of the following characteristics?
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K is looking to purchase Renewable Term insurance. Which of these types of Term insurance may be renewable?
K is looking to purchase Renewable Term insurance. Which of these types of Term insurance may be renewable?
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When is the face amount of a Whole Life policy paid?
When is the face amount of a Whole Life policy paid?
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A limited-Pay Life policy has?
A limited-Pay Life policy has?
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Under a Renewable Term policy, what is the renewal premium calculated on?
Under a Renewable Term policy, what is the renewal premium calculated on?
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A Family Income Policy is a combination of Whole Life and?
A Family Income Policy is a combination of Whole Life and?
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Which of the following types of policies pays a benefit if the insured goes blind?
Which of the following types of policies pays a benefit if the insured goes blind?
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The most important factor to consider when determining whether to convert term insurance at the insured's attained age or the insured's original age is?
The most important factor to consider when determining whether to convert term insurance at the insured's attained age or the insured's original age is?
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When a life insurance policy exceeds certain IRS table values, the result would create which of the following?
When a life insurance policy exceeds certain IRS table values, the result would create which of the following?
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What kind of life insurance starts out as temporary coverage but can be later modified to permanent coverage without evidence of insurability?
What kind of life insurance starts out as temporary coverage but can be later modified to permanent coverage without evidence of insurability?
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Which is true concerning a Variable Universal Life policy?
Which is true concerning a Variable Universal Life policy?
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A policy that becomes a Modified Endowment Contract (MEC):
A policy that becomes a Modified Endowment Contract (MEC):
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Which of the following statements is CORRECT about the period in which a Term Policy can be converted?
Which of the following statements is CORRECT about the period in which a Term Policy can be converted?
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Credit Life Insurance is:
Credit Life Insurance is:
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What type of policy would offer a 40-year-old the quickest accumulation of cash value?
What type of policy would offer a 40-year-old the quickest accumulation of cash value?
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A 15-year mortgage is best protected by what kind of life policy?
A 15-year mortgage is best protected by what kind of life policy?
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Which type of life policy contains a monthly mortality charge as well as self-directed investment choices?
Which type of life policy contains a monthly mortality charge as well as self-directed investment choices?
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What kind of premium does a Whole Life policy have?
What kind of premium does a Whole Life policy have?
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All of these insurance products require an agent to have proper FINRA securities registration in order to sell them, EXCEPT for:
All of these insurance products require an agent to have proper FINRA securities registration in order to sell them, EXCEPT for:
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Variable Whole Life Insurance can be described as:
Variable Whole Life Insurance can be described as:
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Which of these life products is NOT considered interest-sensitive?
Which of these life products is NOT considered interest-sensitive?
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A Renewable Term Policy is renewable at the option of the:
A Renewable Term Policy is renewable at the option of the:
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T would like to be assured $10,000 is available in 10 years to replace a roof on his house. What kind of $10,000 policy should T purchase?
T would like to be assured $10,000 is available in 10 years to replace a roof on his house. What kind of $10,000 policy should T purchase?
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What kind of special need would a policyowner require with an Adjustable Life Insurance policy?
What kind of special need would a policyowner require with an Adjustable Life Insurance policy?
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What type of life policy covers 2 lives and pays the face amount after the first one dies?
What type of life policy covers 2 lives and pays the face amount after the first one dies?
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Study Notes
Types of Life Insurance Policies
- Credit life insurance is issued as Term insurance.
- Conversion provision allows policyowners to switch from term to permanent life insurance without proof of good health.
- Whole Life policies pay the face value upon death or when the insured reaches age 100.
- Equity Indexed Life Insurance allows premiums to fluctuate based on investment performance, except for one statement; it can only remain stable or increase, not decrease.
- A Family Maintenance Policy provides an income stream for a set period starting at the insured's death.
- Conversion Privilege in group Term Life policies allows individuals to leave the group and continue coverage without proving insurability.
- Term insurance expires at the end of its policy period.
- Level Term insurance is renewable, allowing K to purchase Renewable Term insurance.
- The face amount of a Whole Life insurance policy is paid upon the insured's death or at maturity, whichever is first.
- Limited-Pay Life policies require premium payments for a specific number of years.
- Renewable Term policy premiums are based on the insured’s attained age.
- A Family Income Policy combines Whole Life with Decreasing Term insurance.
- AD&D insurance provides benefits if the insured becomes blind.
- The cost is the most critical factor when deciding conversion timing for term insurance.
- Exceeding certain IRS table values results in a Modified Endowment Contract (MEC), losing many tax advantages.
- Convertible Term insurance allows for a switch from temporary to permanent coverage without proof of insurability.
- Variable Universal Life policies give policyowners control over investments and premium payments.
- Policies that become MECs will lose many tax advantages.
- The conversion period for a Term Policy varies according to the contracts.
- Credit Life Insurance is limited to the loan amount or less.
- For fastest accumulation of cash value, a 20-pay life policy is best for a 40-year-old.
- A 15-year decreasing term policy is ideal for protecting a 15-year mortgage.
- Variable Universal Life includes both mortality charges and self-directed investment options.
- Whole Life policies have level premiums that do not change over time.
- Selling certain insurance products requires FINRA securities registration, except for Modified Whole Life.
- Variable Whole Life Insurance is classified as both an insurance and securities product.
- Modified Whole Life is not considered an interest-sensitive product.
- A Renewable Term Policy can be renewed at the insured's discretion.
- For assured availability of $10,000 in 10 years, a Ten-Year Endowment policy is recommended.
- Adjustable Life Insurance policies require the need for flexible premiums.
- A Joint Life Policy covers two lives and pays the face amount upon the first death.
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Description
Explore the various types of life insurance policies, including term, whole life, and equity indexed life insurance. This quiz covers policy features, benefits, and options such as conversion provisions and family maintenance policies. Test your knowledge and understand the intricacies of life insurance.
