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10 Cards in this Set
- Front
- Back
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When the insured purchased a new home, he wanted to purchase a life insurance policy that would protect his family against losing it should he die before the mortgage was paid. The most inexpensive type of policy that would accomplish this need would be
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A. Flexible Term
B. Level Term C. Decreasing Term D. Increasing Term |
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An annually renewable term policy
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A. Increases in premium based on the insured's health.
B. Maintains a level premium each year. C. Renews each year with an increased premium. D. Increases in coverage each year. |
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The time period during which an annuitant contributes to an annuity is called
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A. The annuity appreciation.
B. The accumulation period. C. The deferred growth. D. The saving period. |
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Which of the following is an example of a limited-pay life policy?
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A. Straight life
B. Life paid-up at age 65 C. Renewable term to age 70 D. Endowment maturing at age 65 |
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An individual owns an adjustable life policy. Sometime in the future he wants to increase the death benefit. Which of the following statements is correct regarding the death benefit increase?
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A. The death benefit cannot be increased.
B. It can only be increased when the policy has developed cash value. C. It can only be increased by exchanging the existing policy for whole life. D. It can be increased by providing evidence of insurablility. |
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Which of the following statements is true regarding a universal life policy?
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A. The insurer sets the cash value and premium payment period.
B. The death benefit can be increased without evidence of insurability. C. The premiums can be decreased by the insured. D. It is issued without a guaranteed interest rate. |
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With a traditional whole life policy, the death benefit
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A. Remains constant over time.
B. Increases over time. C. Decreases over time. D. Become pure death protection after 20 years. |
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When an annuity is written, whose life expectancy is taken into consideration?
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A. Owner
B. Annuitant C. Beneficiary D. Life expectancy is not a factor in annuities |
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An insured receives a monthly summary regarding his life insurance policy. He notices that the cash value of the policy is significantly lower this month than it was last month. What type of policy does he have?
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A. Adjustable
B. Variable C. Term D. Whole Life |
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An individual inherited a large sum of money at age 40 and wanted tto use it to provide a guaranteed income after his retirement at age 60. Which of the following types of annuities would best meet this need?
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A. Immediate
B. Flexible premium C. Deferred D. Variable |
