Types of Individual Life Insurance

A vairable policy's death benefit and cash value is based on a distinct pool of investments. These are held in separate accounts that act like -

• Traditional whole life insurance

• Mutual Funds

• Nonvariable insurance

• Keogh plans

An insured receives a monthly summary for their life insurance policy. The insured notices that the cash value of the policy is significantly lower this month than it was last month. What type of policy does the insured have?

• Term

• Securities

• Stock

• Variable

A Universal Life Insurance policy is best described as a/an

• Flexible Premium Variable Life policy

• Variable LIfe with a cash value account

• Annually Renewable Term policy with a cash value account

• Whole LIfe policy with two premiums: target minimum

What characteristic makes whole life permanent protection

• Guaranteed death benefit

• Coverage until death or age 100

• Living benefits

• Guaranteed level premium

All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT

• Most term policies contain a convertibility option

• Upon conversion, the premium for the permanent policy will be based upon attained age

• Evidence of insurability is not required

• Upon conversion, the death benefit of the permanent policy will be reduced by 50%

Which of the following terms best describe the coverage provided by term policies, as compared to any other form of protection

• Longest

• Greatest

• Most comprehensive

• Least

A married couple owns a permanent policy which covers both of their lives and pays the death beenfit upon the death of the first insured. Which policy is that

• Second-to-Die

• Joint Life Policy

• Family Income Policy

• Survivorship Life Policy

Stacy owns a policy in which she is covered as the bread-winner with permanent insurance and with decreasing term insurance in the form of a rider. What type of policy is this

• Family Policy

• Family Protection Policy

• Family Maintenance Policy

• Family Income Policy

What type of premium do both uUniversal Life and Variable Life policies have

• Increasing

• Level fixed

• Flexible

• Decreasing

Which of the following types of policies will provide permanent protection

• Term life

• Whole life

• Credit life

• Group life