Types of Life Policies...Q3

Which type of life insurance policy generates immediate cash value?

• Decreasing Term

• Continuous Premium

• Single Premium

• Level Term

During partial withdrawal from a universal life policy, which portion will be taxed?

• Loan

• Interest

• Cash value

• Principal

Who bears all of the investment risk in a fixed annuity?

• The beneficiary

• The annuitant

• The insurance company

• The owner

Which type of life insurance policy allows the policy owner to pay more or less than the planned premium?

• Straight whole life

• Universal life

• Variable life

• Decreasing term

A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy

• Decreased death benefit at each renewal.

• Required a premium increase each renewal.

• Built cash values.

• Required proof insurability every year.

Which of the following is TRUE regarding the annuity period?

• It may last for the lifetime of the annuitant.

• During this period of time the annuity payments grow interest tax deferred.

• It is also referred to as the accumulation period.

• It is the period of time during which the annuitant makes premium payments into the annuity.

Which of the following products requires a securities license?

• Variable annuity

• Fixed annuity

• Equity Indexed annuity

• Deferred annuity

Under a 20-pay whole life policy, in order for the policy to pay the death benefit to a beneficiary, the premiums must be paid

• Until the policy owner reaches age 65.

• For 20 years.

• Until the policy owner's age 100, when the policy matures.

• For 20 years or until death, whichever occurs first.

Which of the following best describes what the annuity period is?

• The period of time from the accumulation period to the annuitization period

• The period of time during which money is accumulated in an annuity

• The period of time from the effective date of the contract to the date of its termination

• The period of time during which accumulated money is converted into income payments.

The death protection component of Universal Life Insurance is always

• Whole Life

• Adjustable Life

• Increasing Term

• Annually Renewable Term