Life Insurance

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Author:
skarlet90
ID:
72118
Filename:
Life Insurance
Updated:
2011-04-05 18:07:28
Tags:
insurance
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Description:
Types of life insurance quiz
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  1. 2: With variable whole life policies,
    the policyowner may allocate the premium into a sub-account that is held by the
    insurance company, called the
    a General account.

    b separate account

    c Investment account.

    d Premium allocation account.
  2. 6:
    Which of the following would NOT be true regarding a $100,000 20-year level
    term policy?
    • a The policy will expire at the end
    • of the 20-year period.

    • b
    • At the end of 20 years, the policy’s cash value will equal $100,000.

    • c The policy premiums will remain
    • level for 20 years.

    • d If the insured dies before the
    • policy expired, the beneficiary will receive $100,000.
  3. 8: When would a 20-pay whole life
    policy endow?

    a After 20 payments

    b
    In 20 years

    c When the insured reaches age 100

    d At the insured’s age 65
    a After 20 payments



    b

    In 20 years



    c When the insured reaches age 100



    d At the insured’s age 65
  4. 9: Which of the following best
    defines target premium in a universal life policy?

    a The maximum amount the policyowner
    may pay on a policy

    b The minimum amount to make sure
    the policy is annually renewable

    c The corridor of insurance

    d The recommended amount to keep the policy in force
    throughout its lifetime
    • d The recommended amount to keep the policy in force
    • throughout its lifetime

    a The maximum amount the policyowner

    may pay on a policy



    b The minimum amount to make sure

    the policy is annually renewable



    c The corridor of insurance



    d The recommended amount to keep the policy in force

    throughout its lifetime
  5. 10: Who bears all of the investment
    risk in a fixed annuity?

    a The annuitant

    b
    The insurance company

    c The owner

    d The beneficiary
    a The annuitant



    • b
    • The insurance company



    c The owner



    d The beneficiary
  6. 12: All of the following are true
    regarding a decreasing term policy EXCEPT

    a All other factors being the same,
    it has a lower premium outlay than level term.

    b The contract pays only in the
    event of death during the term and there is no cash value.

    c The face amount of the contract
    steadily declines throughout the duration of the contract.

    d The
    payable premium amount steadily declines throughout the duration of the
    contract.
    All other factors being the same,

    it has a lower premium outlay than level term.



    b The contract pays only in the

    event of death during the term and there is no cash value.



    • c The face amount of the contract
    • steadily declines throughout the duration of the contract.



    d The

    payable premium amount steadily declines throughout the duration of the

    contract.

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