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Ch. 3 Types of Life Insurance Policies & Riders Quiz

Total questions: 24

Worksheet time: 12mins

Name
Class
Date
1.

What is the maturity date or time at which the policy’s cash value equals the face amount and the proceeds are paid to the policyowner?

a)

Term

b)

Rider

c)

Cash Value

d)

Endow

2.

What is the death benefit amount payable on a life insurance policy?

a)

Cash Value

b)

Face Amount

c)

Rider

d)

Endow

3.

What is the money accumulated in a permanent policy which the policyowner may borrow as a policy loan or receive if the policy is surrendered before it matures?

a)

Rider

b)

Face Amount

c)

Cash Value

d)

Endow

4.

What is an added benefit attached to the policy that modifies existing coverage?

a)

Rider

b)

Cash Value

c)

Face Amount

d)

Endow

5.

Which type of insurance provides temporary life insurance protection for a specified period of time?

a)

Level

b)

Term

c)

Decreasing

d)

Increasing

6.

Which type of term insurance has a death benefit that decreases over time?

a)

Decreasing

b)

Increasing

c)

Term

d)

Level

7.

Which type of term insurance has a death benefit that increases over time?

a)

Level

b)

Term

c)

Decreasing

d)

Increasing

8.

Which type of term insurance is written as a rider for the return of premium on a permanent policy?

a)

Decreasing

b)

Level

c)

Increasing

d)

Re-Entry

9.

Which type of term insurance allows an existing policy to be exchanged for a new term policy on the re-entry date?

a)

Re-Entry

b)

Level

c)

Decreasing

d)

Increasing

10.

Which type of term insurance is the simplest form of term life insurance for a term of one year?

a)

Annually Renewable

b)

Increasing

c)

Decreasing

d)

Level

11.

Which type of life insurance policy provides coverage for an entire lifetime?

a)

Universal Life

b)

Equity-Indexed Life

c)

Current Assumption

d)

Ordinary Whole Life

12.

Which type of life insurance policy allows the insurance company to change the premiums or interest rate based on current money market rates?

a)

Universal Life

b)

Equity-Indexed Life

c)

Current Assumption

d)

Ordinary Whole Life

13.

Which type of life insurance policy is invested in contracts tied to a stipulated stock index?

a)

Ordinary Whole Life

b)

Current Assumption

c)

Universal Life

d)

Equity-Indexed Life

14.

Which type of life insurance policy allows for flexible premiums and adjustable death benefits?

a)

Variable Life

b)

Variable Universal Life

c)

Universal Life

d)

Whole Life

15.

Which type of life insurance policy is a combination of Universal and Variable Life Policies?

a)

Universal Life

b)

Variable Life

c)

Variable Universal Life

d)

Whole Life

16.

Which type of life insurance policy provides a death benefit plus cash value that can be used in retirement?

a)

Term Life

b)

Whole Life

c)

Universal Life

d)

Variable Life

17.

What is the term for the person who is designated to receive the death benefit of a life insurance policy?

a)

Policyholder

b)

Beneficiary

c)

Insured

d)

Underwriter

18.

Which type of life insurance policy allows the policyholder to invest in a variety of different funds?

a)

Term Life

b)

Whole Life

c)

Universal Life

d)

Variable Life

19.

Which type of life insurance policy allows the policyholder to adjust the premium payments?

a)

Term Life

b)

Whole Life

c)

Universal Life

d)

Variable Life

20.

What is the term for the amount of money the policyholder must pay for insurance coverage?

a)

Benefit

b)

Premium

c)

Endow

d)

Rider

21.

Which type of term insurance provides coverage for a specific period of time and then can be renewed without a medical examination?

a)

Level

b)

Term

c)

Decreasing

d)

Renewable Term

22.

Which type of life insurance policy allows the policyholder to borrow against the policy's cash value?

a)

Term Life

b)

Whole Life

c)

Universal Life

d)

Variable Life

23.

What is the term for the amount of money the policyholder receives if the policy is surrendered before it matures?

a)

Benefit

b)

Premium

c)

Cash Surrender Value

d)

Rider

24.

Which type of life insurance policy provides a death benefit that can be increased or decreased by the policyholder?

a)

Term Life

b)

Whole Life

c)

Universal Life

d)

Variable Life