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 |