In which type of term policy does the annual premium remain level throughout the policy while the death benefit decreases?
B. Decreasing term
All of the following statements about term insurance are correct EXCEPT
C. premiums are higher than other types of life insurance policies
Whole life insurance is often referred to as
D. permanent insurance
Which whole life policy allows for a lifetime of premiums to be paid in a shorter period of time such as 10 or 20 years?
D. Limited-pay whole life
The death benefit of a whole life policy is
D. fixed and level
Which of the following statements about flexible polices is NOT correct?
A. Flexible polices are temporary insurance.
The distinguishing feature of a variable policy is that all of the earnings depend on the investment performance of a
D. separate account
All of the following statements regarding variable life insurance are true EXCEPT
D. most variable life policies offer a guarantee of a minimum return
When does the face amount of a jumping juvenile policy typically increase?
D. Age 18
Which of the following specialized policies insures two people and pays its benefit when the first one dies?
B. Joint life policy
Pam owns a 1-year term policy. At the end of
the year, she may purchase another identical
policy without showing proof of insurability.
Pam's policy is
B. renewable term
Zelda agrees to pay premiums on her policy
every year for 20 years. After that, she will no longer have to pay premiums, but her insurance protection will continue until she dies. Zelda has
A. a limited-pay policy
Ashley has a policy that she must pay premiums on until she is 100 years old or until she dies. Ashley has
D. a continuous premium whole life policy
Which of the following is NOT flexible in a
universal life policy?
B. Guaranteed interest rate
Martha has a universal life policy she purchased several years earlier. At that time, the death benefit in the policy was $100,000. Her cash value is now $50,000, and she has selected death benefit option A. How much is her current death benefit?
C. $100,000
Karen has a universal life policy she purchased several years earlier. At that time, the death benefit in the policy was $100,000. Her cash value is now $20,000, and she has selected death benefit option B. How much is her current death benefit?
D. $120,000
Which of the following is NOT required to be able to sell variable policies?
D. Registration with the NAIC
Which of the following types of insurance is designed to provide life insurance protection for only a limited time?
A. Term life insurance
Which of the following types of insurance requires a level premium and provides lifelong protection?
D. Whole life insurance
Christy has a term policy that will allow her to switch over to a whole life policy at any time during the first half of the term without providing evidence of insurability. What type of policy is this?
