An insured dies within the time limit of an Increasing Term Rider and the beneficiary receives the face amount plus the value of all paid premiums. Which
... [Show More] rider is attached to the policy?
a. Waiver of Premium
b. Return of Cash Value
c. Return of Premium
d. Term to age 100
c. Return of Premium
Jacob owns a policy that pays a death benefit only if he dies within the 20-year policy period. If Jacob dies anytime that the policy is in force, his beneficiary will receive $100,000. The premium that Jacob pays for this policy will be the same through the 20-year policy period. Jacob owns:
a. A Re-Entry Term policy
b. A Level Term policy
c. A Decreasing Term policy
d. An Increasing Term policy
b. A Level Term policy
If an insured has a Life Paid-Up at 75 Policy ( a limited-pay life paid-up at age 75), what would the beneficiary receive if the insured died at age 68?
a. The face amount
b. The cash value
c. The face amount minus the cash value
d. The face amount plus the cash value
a. The face amount
All of the following are true of the Universal Life policy, except:
a. Adjustments to the face amount may be requested by the policyowner to reflect changes in need
b. It allows the owner to make additional contributions that increase the cash value or skip some premiums if the owner desires to do so
c. Any borrowing or partial withdrawal from the cash value account terminates the policy
d. The cash value account earns interest at the current rate with a guaranteed minimum rate established
c. Any borrowing or partial withdrawal from the cash value account terminates the policy
If an insured is concerned about being unable ot pay the premiums on his or her whole life policy in the event of a total disability, which of the following riders should be added to the policy?
a. Waiver of Cost of Insurance
b. Payor Benefit
c. Waiver of Premium
d. Disability Income Benefit
c. Waiver of Premium
The _____________ is the amount payable to the beneficiary upon death of the insured named in a life insurance policy.
a. Loan value
b. Cash value
c. Premium refund
d. Face amount
d. Face amount
Which of the following Whole Life insurance policies has the lowest annual premium payment per $1,000 of coverage for a 35-year-old, all other factors being equal?
a. Limited Pay Ordinary Whole to age 85
b. 30-Pay Ordinary Life
c. 20-Pay Ordinary Life
d. Ordinary Straight Whole life
d. Ordinary Straight Whole Life
If a policyowner of a convertible term life insurance policy exercises his/her right to convert, which of the following will happen?
a. The term policy will be replaced by the permanent life insurance policy
b. The new policy will have must more life insurance coverage than the previous one
c. The new policy will only be issued after proof of insurability is provided
d. The new life insurance policy will likely have must lower premium
a. The term policy will be replaced by a permanent life insurance policy
Which of the following best describes the return of premium rider?
a. An increasing term benefit that matches the cash value accumulation
b. A level term rider in the amount of 20 annual premiums
c. An increasing term benefit that matches the cumulative premiums paid
d. A benefit similar to waiver of premium but is free of charge
c. An increasing term benefit that matches the cumulative premiums paid
An insured purchases a 20-Pay Life Policy with a face amount of $25,000 and an annual premium of $1,000. The insured dies 15 years later when the cash value is $5,000. What amount will the beneficiary receive?
a. $15,000
b. $30,000
c. $20,000
d. $25,000
d. $25,000
The value within a permanent life insurance policy that the policyowner can access through a policy loan or policy surrender is known as the ___________.
a. Cash value
b. Endowment Value
c. Rider Value
d. Annuity Value
a. Cash Value
The double Indemnity Rider requires that the insured die within ________ days of the accident.
a. 365
b. 180
c. 90
d. 120
c. 90
A ______________ policy is one that is written on the life of a minor.
a. Juvenile
b. Joint Life
c. Joint Survivorship Life
d. Equity-Indexed Whole Life
a. Juvenile
A(n) ___________ is an added benefit attached to a life insurance policy for which an additional premium is generally paid.
a. Rider
b. Reduction
c. Extension
d. Exception
a. Rider
The face amount of an Ordinary Whole Life Policy ____________ over the life of the policy.
a. Increases
b. Varies
c. Decreases
d. Remains the same
d. Remains the same
Jason has a Whole Life insurance policy with a face amount of $100,000, an annual premium of $1,000, and a cash value of $10,000. If he wants to borrow money from the insurer, what is the maximum he can obtain?
a. $100,000
b. $90,000
c. $10,000
d. The sum of the premiums paid up to that point in time
c. $10,000
Which of the following is NOT a type of Term Life Insurance Policy?
a. Decreasing
b. Increasing
c. Level
d. Variable
d. Variable
If Jon dies with an outstanding policy loan of $10,000 on his $100,000 policy that has $15,000 of cash value, what will his beneficiary receive at the time of claim?
a. $115,000
b. $90,000
c. $100,000
d. $105,000
b. $90,000
How is a Variable Universal Life Insurance policy different from a Universal Life Insurance policy?
a. The ability to invest the cash values in various separate accounts
b. The premium payments
c. The adjustability of the face amount
d. The death benefit options
a. The ability to invest the cash values in various separate accounts
With Joint Life Insurance policies, the premium is based on the:
a. Average age of both insureds
b. Age of the youngest insured
c. Age in a specialized table used for this type of policy
d. Age of the oldest insured
a. Average age of both insureds
Quentin, age 65, has a life insurance policy he no longer needs and no longer can afford, but he does have a need for cash. XYZ Inc. purchased his policy for less than the face amount but more than the cash value and is not the policyowner and premium payor. This was which of the following transactions?
a. Buy/Sell Agreement
b. Viatical Trust Settlement Agreement
c. Life Settlement
d. Living Needs Transaction
c. Life Settlement
A life insurance premium is paid each month. The insurer then subtracts a mortality and expense charge from the policy's cash value. This best describes which of the following life insurance policies?
a. Whole Life
b. Variable Whole Life
c. Adjustable Whole Life
d. Universal Life
d. Universal Life [Show Less]