Insurance policy supplies an income stream over a set period
N is a 40-year old applicant who would like to
retire at age 70. He is looking to buy a life insurance policy with level
premiums, permanent protection, and be paid-up at retirement. Which of these
should N purchase?
·
30 Pay Life
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
Which of these is an element of a Variable
Life policy?
·
A fixed, level premium
Who benefits in Investor-Originated Life
Insurance (IOLI) when the insured dies?
·
Policyowner
A Limited-Pay Life policy has
·
premium payments
limited to a specified number of years
Which statement about a whole life policy is
correct?
·
Cash value may be
borrowed against
What type of life insurance gives the greatest
amount of coverage for a limited period of time?
·
Term life
What type of insurance offers permanent life
coverage with premiums that are payable for life?
·
Whole Life
What type of life policy has a death benefit
that adjusts periodically and is written for a specific period of time?
·
Decreasing term
How does a typical Variable Life Policy
investment account grow?
·
Through mutual funds,
stocks, bonds
Which of these life products is NOT considered
interest-sensitive?
·
Modified Whole Life
G purchased a Family Income policy at age 40,
The policy has a 20-year rider period. If G were to die at age 50, how long
would G's family receive an income?
·
10 years
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. What kind of policy should Q purchase?
·
Whole life policy with
other insured rider
Which is true concerning a Variable Universal
Life policy?
·
Policyowner controls
where the investment will go and selects the amount of the premium payment
Which provision allows the policyowner to
change a term life policy to a permanent one without providing proof of good
health?
·
Conversion
Which type of policy is considered to be
overfunded, as stated by IRS guidelines?
·
Modified Endowment
Contract
Which of these statements describe a Modified
Endowment Contract (MEC)?
Exceeds the maximum amount of premium that can
be paid into a policy and still have it
·
recognized as a life
insurance contract
Which of these would be considered a Limited-Pay
Life policy?
·
Life Paid-Up at Age 70
Which statement is correct regarding the
premium payment schedule for whole life policies?
·
Premiums are payable
throughout the insured's lifetime/ coverage lasts until death of the insured
What kind of insurance policy supplies an
income stream over a set period of time that starts when the insured dies?
·
Family Maintenance
Policy
All of these insurance products require a
producer to have proper FINRA securities registration in order to sell them
EXCEPT for
·
Modified Whole Life
K buys a policy where the premium stays fixed
for the first 5 years. The premium then increases in year 6 and stays level
thereafter, all the while the death benefit remains the same. What kind of
policy is this?
·
Modified Whole Life
All of these are characteristics of an
Adjustable Life policy EXCEPT
·
face amount can be
adjusted using policy dividends
When is the face amount paid under a Joint
Life and Survivor policy?
·
upon death of the last
insured
Which of these characteristics is consistent
with a Straight Life policy?
·
Premiums are payable
for as long as there is insurance coverage in force
F needs life insurance that provides coverage
for only a limited amount of time with a death benefit that changes regularly
according to a schedule. What kind of policy is needed?
·
Decreasing term policy
USA 
India