New York Life Insurance # Types Of Life Policies

Front 1

Both Universal Life and Variable Universal Life have a

Back 1

Flexable premium

Front 2

Which policy componet decreases in decreases term insurance ?

Back 2

Face amount

Front 3

An Adjustible Life policyowner can change which of the following policy features ?

Back 3

The coverage peroid

Hint 3

Typically, the owner of an adjustible life policy has the following privileges: increasing or decreasing the premium: changing the premium - peroid: increasing or decreasing the face amount of coverage: or changing the peroid of protection.

Front 4

An insured purchased a 10 year level term life policy that is guaranteed renewable and convertable. What happens at the end of the 10- year term.

Back 4

The insured may renew the policy for another 10 years, but at a higher premium rate

Front 5

An insured purchased a Life Insurance policy. The agent told him that depending upon the company's investments and expense factors, the cash values could change from those shown in the policy at issue time. The policy is a/an ?

Back 5

Interest- sensitive Whole Life

Front 6

Which option for Universal life allows the beneficary to collect both the death benefit and cash value upon the death of the insured

Back 6

Option B

Hint 6

Option the death benefitincludes the annual increase in cash value so thT THE DEATH BENEFIT GRADUALLY INCREASES EACH YEAR.

Front 7

A policy will pay the death benefit if the insured dies during the 20 year premium- paying peroid, and nothing if death occurs after the 20- year peroid. What type of policy is this ?

Back 7

Level term.

Hint 7

20 year term policy is written to provide a level death benefit for 20 years

Front 8

In a adjustable Life policy all of the following can be changed by the policy owner EXCEPT ?

Back 8

The Type of investment.

Front 9

The type of term insurance that provides increasing death benefits as the insured ages is called

Back 9

Increasing term.

Front 10

Concerning Juvenile Life Insurance, which of the following statements is INCORRECT?

Back 10

jUVENILE lIFE IS CLASSIFIED AS ANY LIFE INSURANCE PURCHASED BY A MINOR

Front 11

The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this chnge ?

Back 11

The death benefit can be increased by providing evidence of insurability

Front 12

In Modified Life policies, what happens to the premium ?

Back 12

It is level at the beginning and increases after the first few years

Hint 12

Modified life policies charge lower premiums ( silular to term rates ) during the first few policy years, usualy the first 3 to 5 years and then higher level premiums for the remainder of the insured's life. The higher susequent premiums are typically higher than straight life premiums would be for the same age and ampunt of coverage

Front 13

Which of the following best defines target premium in a universal life policy ?

Back 13

The recommended amount to keep the policy in force throughout it's lifetime

Front 14

During partial withdrawal from a universl life policy, which portion will be taxed ?

Back 14

Interest

Hint 14

During the withdrawal, the interest erned on the withdrawal, the interest earned on the withdrwan cash value may be subject to taxation

Front 15

An insured recieves a monthly summary for 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 dose the insured have ?.

Back 15

Variable

Hint 15

Variable Life policies vary in value , as the name suggest , because the value is based on the stock that it support the policy. If a policyholder wants a more stable reliable value, he/she should invest in a fixed policy

Front 16

Which of the following is an example of a limited-pay life policy ?

Back 16

Life Paid-up at Age 65

Hint 16

Limited Pay Whole Life premiums are all paid by the time the insured reaches age 65. The policy endows when the insured turns100, It is the premium paying peroid that is limited, not the maturity.

Front 17

Which of the following riders would NOT cause of Death Benefit to increase ?

Back 17

Payor Benefit Rider

Hint 17

Payor Benefit Rider dose not increase the Death Benefit ; it only pays the premium if the payor is disabled or dies. With Guaranteed Insurability Rider, the policyowner can increase DB at specified ages or events, i.e. marriage of birth of a child; Cost of Living Rider increases DB to keep pase with inflation; in Accidental Death Rider, if the insured dies from an accident,, DB is a multiple of the Face Amount.

Front 18

What kind of policy issues certificatifcates of insurance to insured ?

Back 18

Group insurance

Front 19

What type of insurance would be used for a Return of Premium rider ?

Back 19

Increasing Term

Front 20

Which of the following types of insurance policies is most commonly used in asa credit life insurance ?

Back 20

Decreasing Term

Hint 20

Credit insurance is a special type of coverage written to insure the life of the debtor and pay off the balance of a loan in the event of death of the debtor. it's usually written in decreasing term insurance.

Front 21

What is the purpose of establishing the target premium for a universal life policy ?"

Back 21

To keep the policy in force

Front 22

Which of the following is INCORRECT regarding a $100,000 20- year level term policy

Back 22

Atthe end of 20 years, the policy's cash value willequal $100,000

Front 23

Which of the following is nNOT allowed in credit life insurance ?

Back 23

Creditor requiring that a debtor buys insurance from a certain insurer.

Front 24

Which of the following Life Insurance policies would be considered interest sesetive ?

Back 24

Universal Life

Front 25

A 20-year family income policy was purchased effective April 1, 2001. The insured died four months later, on August 1, 2001. The beneficary recieves monthly income for ?

Back 25

19 years and 8 months

Front 26

All of ther factors being equal, the least expensive first-year premium payment is found in ?

Back 26

Annually Renewable Term

Front 27

A policy which pays monthly income upon the death of the breadwinner for a predetermined number of years

Back 27

Family maintenance

Hint 27

Whole life pays a lump-sum, and level term pays monthly benefits for the predetermined years of the policy.

Front 28

The policyowner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change

Back 28

The death benefit can be increased by providing evidence of insurability

Hint 28

The policy owner ( insured ) would need to porve insurability for the amount increase

Front 29

All of the following are TRUE regarding the convertability option under a term life insurance policy EXCEPT ?

Back 29

Upon conversion, the death benefit of the permanet policy will be reduced by 50%

Front 30

A domestic insurer issuing variablecontracts must establish one or more

Back 30

Separate accounts

Hint 30

any domestic insurer issuing variable contracts must establish one or more separate accounts . The insurermust maintain in each separate account assets with a value equal to the reserves and other contract liabilities connected to the account

Front 31

which coponet increases in the increasing term insurance ?

Back 31

Death benefits

Front 32

A Universal Life Insurance policy has 2 types of interestrates tht are called ?

Back 32

Guaranteed and Current

Hint 32

The insurer credits the cash value in the policy with a current (nonguaranteed) interest rate and backs the cash value with a contract (lower guaranteed) rate of interest

Front 33

Which of the following determines the cash value of a vriable life policy ?

Back 33

The performance of the policy portfolio

Hint 33

The cash value of variable lifr policy is not guaranteed and fluctuates with the performance of the portfolio in which the premiums have been invested

Front 34

your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65, What would be the right policy for this client ?

Back 34

Limited pay whole life

Hint 34

Premium payments willo cease at her age 65, but coverage will contnue to her death or age 100

Front 35

An employee will be taxed on the cost of group life insurance paid by the employer if the amount of coverage exceeds ?

Back 35

$50,000

Hint 35

The cost of coverage paid by the employer in excess of $50k is taxed to the employee.

Front 36

When would a 20-pay whole life policy endow ?

Back 36

When the insured reaches age 100

Front 37

A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. Inwhich the following scenarios will the rider waive the payment of premium?

Back 37

If the father is disabled for more than 6 months

Hint 37

Payor benefit only pays if the owner, the father in this example is disabled for at least 6 months.

Front 38

All the following are true regarding a decreasing term policy EXCEPT ?

Back 38

The payable premium amount steadly declines throughout the the duration of the contract.

Front 39

Which Universal Life option has gradually increasing cash value and a level death benefit ?

Back 39

Option A

Hint 39

Under Option A, the death benefit remains level while the cash value gradually increases. the death benefit will increase at a later date in order to maintain a gap between cashvalue and the death benefit before the policy matures.

Front 40

Which of the following would NOT cause the Death Benefit to increase ?

Back 40

Payor Benefit Rider

Front 41

The type of term insurance that provides increasing death benefits as the insured ages is called ?

Back 41

Increasing term

Front 42

Which of the following is NOT allowed in credit life insurance ?

Back 42

Creditor requiring that adebtor buys insurance from a certain insurer.

Front 43

Which special policy combines decreasing term insurance withwhole life insurance to provide the insured's family witha monthly income upon the death of the insured, while maintaning permanet coverage until the end of the income payments ?

Back 43

Family Income Policy

Front 44

What do Modified Life and Straight Life policies have in common ?

Back 44

Accuumilation of cash

Front 45

The death protection componet of Universal Life Insurance is always

Back 45

Annually Renewable Term

Front 46

Which Universal Life option has gradually increasing cash value and a level death benefit ?

Back 46

Aption A

Hint 46

Option A the death benefit remains level while the cash value gradually increases. The death benefit will increase at a later date in order to maintain a gap between the cash value and the death benefit before the policy matures.