WorksheetsCh. 2: Types of Policies
Total questions: 10
Worksheet time: 10mins
An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?
Variable Life
Adjustable Life
Graded Premium Life
Limited-pay Life
Which of the following types of policies allows the policy owner to skip premium payments, provided that there is enough cash value in the policy to cover the premium amount?
Variable Life
Adjustable Life
Universal Life
Flexible Life
What license or licenses are required to sell variable annuities?
No license is required
Both a life insurance license and a securities license
Only a life insurance license
Only a securities license
Which of the following types of policies will provide permanent protection?
Term life
Group life
Whole life
Credit life
In a survivorship life policy, when does the insurer pay the death benefit?
Upon the last death
Upon the first death
Half at the first death, and half at the second death
If the insured survives to age 100
Which policy component decreases in decreasing term insurance?
Dividend
Premium
Face amount
Cash value
When an annuity is written, whose life expectancy is taken into account?
Life expectancy is not a factor when writing an annuity.
Owner
Annuitant
Beneficiary
An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy’s cash value. There is a limit for a withdrawal and the insurer charges a fee. What type of policy does the insured most likely have?
Adjustable Life
Term Life
Limited Pay
Universal Life
Which of the following best describes what the annuity period is?
The period of time during which accumulated money is converted into income payments.
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 type of policy that can be changed from one that does not accumulate cash value to the one that does is a
Convertible term policy
Renewable term policy
Decreasing term policy
Whole life policy
