VUL 1

Life insurance contributes directly to the welfare and progress of the country by

• accumulating capital for investment in commerce and industry
• partially relieving the community of the care of dependents
• encouraging provisions for the future
• all of the above

One supplementary benefit offered is a payor's benefit which is intended to

• provide for the retum of premiums to an adult payor in the event that a minor insured dies
• provide a waiver of premium benefit in the event of death or disability of the person paying the premium
• allow the insurance company to pay the policy's proceeds to the person who seems equitably entitled to the proceeds
• assure that the adult payor will retain a vested interest in the policy when the insured reaches the age of majority

A whole life policy with an initial premium rate that applies to the first 5 years of the policy and a higher premium rate that applies to the remainder of the premium-payment period is known as

• an extended life policy
• a modified life policy
• an experience-premium policy
• a guaranteed renewable policy

A risk is considered substandard based on any or all of the following criteria

• death, occupation and moral character
• occupation, moral character and family health history
• income, educational attainment and occupation
• death, income and educational background

The only instance when a life insurance contract is treated primarily as an indemnity agreement is when a

• person insures the life of a friend
• creditor insures the life of his debtor to protect himself
• person insures the life of his or her spouse to protect against the loss of income earned by the spouse
• person in a partnership insures the life of his panner to protect the firm against loss due to the death of that parmer

Which of the following describes the convertible feature of a term insurance policy?

• It may be changed to another term insurance policy without evidence of insurability
• It may be changed for a guaranteed sum
• It may be changed to another whole life policy
• It may be changed to a permanent insurance without evidence of insurability

A policy which permits the policyholder to vary the level of premium or the sum insured, and has its cash values dependent investment performance and the level of premiums paid is known as a(an) _________ policy.

• participating whole life
• term with advance premium deposit provision
• annuity
• universal life

A policy which affords coverage for uto or more persons simultaneously with the face amount of the policy payable when any of the insured dies at which time the policy terminates automatically is known as a

• Joint and Survivor Annuity
• Double Duty Pesos Insurance
• Joint Life Policy
• Split Pesos Insurance Policy

The savings element of permanent plans allows for the build up of

• dividends
• cash values
• maturity benefits
• death benefits

Mr. Alvarez bought a Pl 50,000 policy with a 20-year reducing term rider. He died 5 years after the policy issue date. After his death, his wife received P 150,000 and a monthly income thereafter for 15 years. This definitely has a

• Family Maintenance Insurance
• Family Income Rider
• Straight Family Policy
• Combination of whole life and level term insurance