Chapter 3: Types of Insurance Policies Quiz
This deck covers key concepts and questions related to various types of life insurance policies, including term life, whole life, and variable life policies. It is designed to help learners understand the different features, benefits, and requirements of each policy type.
A ______ Term life policy is normally used when covering an insured mortgage balance
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| Term | Definition |
|---|---|
A ______ Term life policy is normally used when covering an insured mortgage balance | decreasing |
K age 45, and his wife age 43 have three children. they purchase a family policy that covers K’s wife to age 65. All of these situations will pay a death benefit except | K’s wife dies at age 66 |
The combination of Whole Life and _______ term insurance is referred to as a family income policy | decreasing |
what kind of life insurance product covers children under their parents policy | A term rider |
K is looking to purchase renewable term insurance. which of these types of insurance may be renewable? | level |
what type of life policy covers two people and pays upon the death of the last insured? | survivorship |
Y purchased $100,000 worth of permanent protection on himself and $50,000 worth of 10-year Term coverage for his wife on the same policy. which policy did Y purchase? | whole life policy with an other insured rider |
who has the option to renew a renewable term policy? | insured |
P is looking to purchase a life insurance policy withat 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 type of policy should P purchase? | Family maintenance policy Family maintenance policy pays a monthly income from the date of death of the insured to the end of the preselected period. the payment of the face amount of the policy is payable at the end of such preselected period |
under an interest-sensitive whole life policy | cash values are determined by interest rates |
which of the following actions is not possible with a universal life policy? | premiums may be applied as a credit against income tax |
what type of life policy has a death benefit that adjusts periodically and is written for a specific period of time? | decreasing term |
a universal life policy is sometimes referred to as an unbundled life policy because the owner can see the interest earned, cost of insurance and the | expense charges |
which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? | Variable life |
Variable whole life insurance can be described as | both an insurance and securities product |
A term life insurance policy matures | upon the insureds death during the term of the policy |
which of the following is considered an element of Variable Life Policy? | underlying equity investment |
what type of insurance offers permanent life coverage with premium that are payable for life? | whole life |
the amount of coverage on a group credit life policy is limited to | insureds total loan value |
which of the following policies is characterized by a flexible premium and death benefit and allows the policy owner control of the investment aspect of the plan? | variable universale life any policy whose title includes the term “universal” indicates that the policy has a flexible or adjustable premium. the variable nature of the product indicates that the cash savings value is invested in the stock market which permits for a contract owner to decide where the equity is to be invested |
when is the face amount paid under a joint life and survivor policy | after the death of the last insured |
a ____ _____ life policy combines investment choices with a form of Term coverage | variable universal |
T would like to assure $10,000 is available in 10 years to replace a roof on his house. what kind of $10,000 policy should T purchase? | a 10 year endowment |
credit life insurance is | issued in an amount not to exceed the amount of the loan |
S is covered by a whole life policy. which insurance product can cover his children | child term rider |
which of the following is not required to be included in a whole life policy | policy guaranteed dividend table |
how does a typical variable life policy investment account grow | through mutual funds, stocks and bonds |
a life insurance policy that provides a policy owner with cash value along with a level face amount is called | whole life |
what kind of life insurance policy pays a specified monthly income to a beneficiary for 30 years and then pays a lump sum benefit at the end of that 30 years? | family maintenance policy |
what type of policy would offer a 40 year old the quickest accumulation of cash value | 20-paylife |
a limited pay life policy has | premium payments limited to a specified number of years |
what type of life insurance gives the greatest amount of coverage for a limited period of time | term life |
which of these life products are not considered interest-sensitive | modified whole life |
which type of policy is considered to be overfunded as stated by IRS guidelines | modified endowment contract |
what kind of premium does a whole life policy have | level |
how long does the coverage normally remain on a limited-pay life policy | age 100 even though the premium payments are limited to a certain period the insurance protection extends until the insureds death or age 100 |