What type of life insurance policy covers two or more persons and pays the face amount upon the death of the first insured? Quickly and professionally. Which of the following combination plans is designed to protect an insured from an unpaid mortgage balance upon premature death? C. The investment vehicle for this type of policy is held in the insurers general portfolio Requires that a new policy must be applied for if a misstatement of age is found on the current policy Quickly and professionally. C. subtract from any dividends owed Chapter 2 - Types of Life Policies Flashcards | Chegg.com A. Builds cash value Claim will be paid in full A. Misrepresentation All of these are characteristics of an Adjustable Life policy: Adjustable premiums, Adjustable premium payment period and combination of term and whole life insurance. An insurers basic promise What is the face amount of a $50,000 graded death benefit life insurance policy when the policy is issued? A 42 year old executive wants to purchase life insurance that will allow for increases or decreases to coverage as his/her needs change. M purchase a $70,000 life insurance policy with premium payments of $550 a year for the first 5 years. A Renewable Term Policy is renewable at the option of the. Borrow against policy cash value and use as a down payment A. C. Guarantee Insurability rider D. Return of Premium, What action will an insurer take if an interest payment on a policy loan is not made on time? A. the face amount is automatically adjusted at the time of renewal At the beginning of the sixth year, the premium will increase to $800 per year but will remain level thereafter. Void the policy, no matter when it is discovered D. additional Whole Life coverage at specified times, D. additional Whole Life coverage at specified times, In a life insurance policy, which feature states that the policy will not cover certain risks? Which of the following characteristics is CORRECT about Interest Sensitive WHOLE LIFE? A policy that becomes a Modified Endowment Contract (MEC): When a policyowner exchanges a term policy for a whole life policy without providing proof of good health, which of these apply? C. delivery of policy What is the purpose of the Time of payment of Claims provision? All of these statements about Equity Indexed Life Insurance are correct EXCEPT, Cash value has a minimum rate of accumulation, If the gain on the index goes beyond the policys minimum rate of return, the cash value will mirror that of the index, The premiums can be lowered or raised, based on investment performance, Tied to an equity index such as the S&P 500, The premiums can be lowered or raised, based on investment performance. C. Collateral assignment Modify a provision in the insurance contract, N is a student pilot with a large life insurance policy. What kind of life insurance starts out as temporary coverage but can be later modified to permanent coverage without evidence of insurability? LIMITED PAY LIFE POLICY: Everything You Need To Know - Broker in Insurance D. the insurance company assumes the investment risk, A. both an insurance and securities product, When is the face amount paid under a Joint Life and Survivor policy? D. Insurer may void the policy if a misstatement of age is discovered, A. Which of these types of term insurance may be renewable? Which of these statements accurately portrays an adjustable life insurance policy? Which of these would be considered a Limited-Pay Life policy? D. Amount of premium payments and when they are due, D. Amount of premium payments and when they are due, Whose life is covered on a life insurance policy that contains a payor benefit clause? the initial premium is lower compared to an equivalent amount of whole life coverage. Which statement regarding a single premium life insurance policy is NOT correct? B. disallow a change of beneficiary during the Contestable period Extended Term Modified Whole Life Types of Life Policies Quiz - Quizizz A. Which of these should N purchase? How long does one premium payment cover in a single premium whole life policy? D. Premiums are waived if payor becomes disabled, D. Premiums are waived if payor becomes disabled, D is the policyowner and insured for a $50,000 life insurance policy. C. Variable Universal Life Which of the following is the process of getting oxygen from the environment to the tissues of the body? A. provide a source of revenue to the insurance company When would evidence of insurability be required for a person already covered with a variable universal life policy? C. Variable Universal Life A. A. The type of policy that M has purchased is, Variable Life products require a producer to, hold a Life Insurance license and a Securities license. SURVEY . Which of these is an element of a Variable Life policy? C. Premiums are payable until age 65/ coverage lasts a lifetime 10-year Renewable and Convertible Term For a predetermined timeframe that you choose from a list of options, such as 10 or 20 years, For an exact time frame that you specify, such as 17 or 21 years, Can be used to obtain policy loans, lending agreements that use the cash value of a life insurance policy as collateral. A. C. a securities product only Which of these life insurance policies does NOT contain a cash value provision? Which of these may NOT be deducted from premium payments or the cash value of a variable insurance policy? T has a term policy that allows him to continue the coverage after expiration of the initial policy period. A. Make sure to check your spam folder if you don't see it. C. An insurers required reserve amount The face amount will remain at $70,000 throughout the life of the policy. A. Waiver of premium Which policy requires an agent to register with National Association of Securities Dealers (NASD) before selling? D. Deducted when assigned to another policyowner, B. Deducted when the policy is discontinued, T took out a $50,000 life insurance policy with an Accidental Death and Dismemberment rider. What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies? Modified Whole Life Which of these types of policies may NOT have the Fluctuate with changes in the cash account. $16,000 was received tax-free and $4,000 as ordinary income. Home Flashcards Life Insurance Ch. B. Term life B. A. A. dies of natural causes At the beginning of the sixth year, the premium will increase to $800 per year but will remain level thereafter. What kind of policy should Q purchase? K is looking to purchase Renewable Term insurance. A life insurance policy that provides a policyowner with a cash value along with a level along with a level face amount is called: What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies? A 15-year mortgage is best protected by what kind of life policy? Let us have a look at your work and suggest how to improve it! Term insurance has which following characteristics? Policys cash value may be used to pay premiums, Premium payments may be made at unscheduled times, PERMIUMS MAY BE APPLIED AS CREDIT AGAINST INCOME TAX. B. A. Insuring Whole life policy with other insured rider. D. A single premium is paid at time of application/ coverage lasts until retirement, A. Claims are denied under the Suicide clause of the policy G has been receiving monthly payments from the annuity. Premiums are payable for a set period/ coverage expires at that point Term insurance has which of the following characteristics? When G dies, the insurer: Does not have to make any further payments. How much will the insurance company pay the beneficiary? Claim will be denied B. N dies September 15. Chapter 1 Exam Types Of Insurance Policies Flashcards Preview - Brainscape A Whole Life Insurance Policy endows when the: What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time? B. B. agreeing to a physical examination Which of these should N purchase? decrease face amount When is the face amount paid under a Joint Life and Survivor policy? A. Ls spouse dies at age 62. Chapter 3 (Part 1) Flashcards | Quizlet These are all accurate statements regarding universal life insurance EXCEPT. A. You can get your paper edited to read like this. C. Their natural child dies at age 18. Grace period A life insurance policyowner may sell their policy to a ____ in order to receive a percentage of the policys face calue. For California residents, CA-Do Not Sell My Personal Info, Click here. 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? A. graded death benefits Chapter 3 (Part 1), Chapter 3 (Part 2) Flashcards | Quizlet C. additional Whole Life coverage at any time D. Change the beneficiary, if revocable, B. C. Reinstatement 30 seconds . D. Insured must be totally disabled to qualify, C. Insured must be eligible for Social Security disability for claim to be accepted, Which of the following Dividend options results in taxable income to the policyowner? C. Estate decrease premium payment. Variable Universal Life How does the cost for a survivorship life policy compare to the cost of combining two separate life insurance policies? When assessing a client with partial-thickness burns over 60% of the body, which finding should the nurse report immediately? K purchased a $10,000 Life Policy that will pay the face amount to her if she lives to age 65, or to her beneficiary if she dies before age 65. What type of life insurance incorporates flexible premiums and an adjustable death benefit? Which statement regarding universal life insurance is correct? B. estate of the insured evidence of insurability is required when there is a change in premium. B. does not allow the policyowner to assume the investment risk Which statement about a whole life policy correct? Which of the following actions is NOT possible with a Universal Life policy? D. Joint, What kind of life insurance starts out as temporary coverage but can be later modified to permanent coverage without evidence of insurability? L, aged 50, and Ls spouse, 48, have one natural child and one adopted child. Which statement concerning an adjustable life insurance policy is FALSE? 10 year increments They purchase a Family Policy that covers Ls spouse to age 65. Family Maintenance policy Which of the following could be a future use of the cash value that builds in a recently-purchased whole life insurance policy? B. How much will the insurer pay? D. Claim will be decided by an arbitrator, Additional coverage can be added to a Whole Life policy by adding a(n) What kind of premium does a Whole Life policy have? Automatic Premium Loan provision attached to it? Browse over 1 million classes created by top students, professors, publishers, and experts. D. Void the policy only if it is discovered during the Contestable period and proven to be material, D. Void the policy only if it is discovered during the Contestable period and proven to be material, Which of these is NOT considered to be a right given to a policyowner? A flexible premium deposit fund and a monthly renewable term insurance policy. C. Entire Contract D. It is taxed as ordinary income, S has a Whole Life policy with a premium payment due soon. If D dies without making any further changes, to whom will the policy proceeds be paid to? D. Universal Life, Which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options? B. S is covered by a whole life policy. Which of these statements made by the producer would be correct? What type of life policy covers 2 lives and pays the face amount after the first one dies? Which of the following combinations best describe a universal life insurance policy? Offer and acceptance Which of these types of insurance allows the policyowner to have level premiums and to also choose from a selection of investment options? B. an insurance product only What type of insurance offers permanent life coverage with premythat are payable for life? 1 / 63. Which of the following actions require a policyowner to provide proof of insurability in an adjustable life policy? Decreasing Term B. Waiver of Premium rider C. Premiums are waived if juvenile becomes disabled What kind of life insurance product covers children under their parents policy? Q would like to purchase $100,000 of permanent protection on his wife and $50,000 of Term coverage on himself under the same policy. C. Reduced Paid-Up Which of the following is generally a form of group credit life insurance? C. Graded whole life policy What type of life policy covers two people and pays upon the death of the last insured? C. the renewal premium is calculated on the basis of the insureds attained age B. What kind of $10,000 policy should T purchase? D. Name bank as beneficiary, Which of these provisions require proof of insurability after a policy has lapsed? B. Waiver of Premium is available on both permanent and term insurance policies Interest Sensitive Whole Life B. Which type of life insurance policy is best suited for paying off the outstanding balance of a 30-year mortgage in the event of the insured's death? Which of the following types of policies BEST identifies one in which the cash value may fluctuate to reflect changing assumptions regarding mortality cost, interest, and expense factors? D. Adjustable, What kind of life policy either pays the face value upon the death of the insured or when the insured reaches age 100? B. Which statement regarding the cash value of a whole life insurance policy is correct? D. Universal, Which provision allows the policyowner to change a term life policy to a permanent one without providing proof of good health? How are policyowner dividends treated in regards to income tax? Assignment Variable Life B. D. Premiums are returned under the Consideration clause, A. B. Adjustable Life A. A. A. Exceeds the maximum amount of premium that can be paid into a policy and still have it recognized as life insurance contract. Life Paid-Up at Age 70 A survivorship life insurance policy usually covers how many lives? C. Convertible Term There are no guaranteed minimum interest rates the face amount and premiums can be changed simultaneously by the policyowner, Straight whole life insurance can be accurately described in all of these statements EXCEPT, Policy protection normally expires at age 65. The face amount will remain at $70,000 throughout the life of the policy. Cash value may be borrowed against What type of life insurance gives the greatest amount of coverage for a limited period of time? adjustable premium payment period C. Level term John received a one-time distribution of $50,000 from his modified endowment contract (MEC). For an exact time frame that you specify, such as 17 or 21 years. A. Which of the following is the process of getting oxygen from the environment to the tissues of the body? 10-year Renewable and Convertible Term Which of the following policies combines investment choices with a form of Term coverage? Universal life insurance normally has a minimum guaranteed cash value for duration of the policy. B. Graded-Premium Life The amount of coverage on a group credit life policy is limited to, A policy that becomes a Modified Endowment Contract (MEC), Life insurance that covers an insureds whole life with level premiums paid over a limited time is called. G purchased a Family Income policy at age 40, The policy has a 20-year rider period. Which of these is NOT considered a type of limited payment whole life insurance? -$25,000 Under $50,000 initially, but increases over time. It is tax deductible C. upon death of the last insured D. Split equally between the ex-wife and current wife, What action can a policyowner take if an application for a bank loan requires collateral? They both: Limited payment life insurance has a few advantages compared to standard whole life. What kind of life policy either pays the face value upon the death of the insured or when the insured reaches age 100? C. Assignment of ownership Long term care P is looking to purchase a life insurance policy that will pay a stated monthly income to his beneficiaries for 20 years after he dies and a lump sum of $20,000 at the end of that 20 year period. What is the guaranteed cash value of a whole life insurance policy when the insured turns 65 years old? B. Decreasing B. Endowment K buys a policy where the premium stays fixed for the first 5 years. Which statement is correct regarding the premium payment schedule for whole life policies? Which statement is correct regarding the premium payment payment schedule for whole life policies? face amount can be adjusted using policy dividends, face amount can be adjusted using policy dividends, issued in an amount not to exceed the amount of the loan, If X wants to buy $50,000 worth of permanent protection on his/her spouse and $25,000 worth of 10-year Term coverage on X under the same policy, the applicant should purchase, A Whole Life Policy with an Other Insured Rider.
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