A life insurance policy provides for monthly income payment if the insured dies at any time during the ten years of extra coverage. The income begins at the time of death and continues for ten years. What kind of policy did the insures buy?
Family Maintenance
Which policy is NOT restricted to a specific period of time?
Whole Life
Holly, age 35 has just purchased a 20 pay whole life policy . When she turns age 55, she will?
Cease paying premiums.
The primary difference between straight whole life and limited pay life, is that limited pay polices?
Have short premium-paying periods.
The following statements about universal life policy are true except?
Premiums and.or amount of coverage cannot be increased or decreased at the policy owners option.
Money paid by the insured to the insurance company for insurance protection is called?
Consideration ( money)
A life insurance policy is unilateral contract because
Only the insurance company is bound to lice ip to is side if the agreement.
The cash vale accumulation in a life insurance policy.
Can be used for loans and other options
A Limited pay policy.
Requires premium for a specified number of years.
A variable life policy.
Death benefits varies to reflect the uneaten results of the underlying separate account , but never below a guaranteed minimum.
Term insurance differs from permanent insurance in that term.
Builds no cash values, pays a death benefit only.
Third party ownership refers to
A situation where the beneficiary is someone other than the insured.
What is the basic source of information for life insurance underwriting and policy issue?
The application
What is the source for additional medical information the underwriter can use?
Physician's report
An insurance policy is a legal contract. Each of the following elements is necessary for the formation of a valid contract EXCEPT
Signature of each party
Under contract law, the actions by a party ,may intentionally and voluntarily give up a know right.. When this occurs, it is know as creating a?
Waiver
Life insurance possesses several unique advantages. Which of the following is NOT an advantage of life insurance.
Pays full face value even if premiums have not been met, resulting in a lapse of the policy.
Term insurance pays benefits if the
Insureds dies during the term period.
Not a characteristic of a whole life continuous premium policy (also know as "straight life" )?
The premiums are paid only until the insures reaches age 70.
All true about traditional Whole life insurance policy except.
Alternative premium payment plans are available.
The most significant characteristic of a single premium whole life policy is that the
Entire cost of the policy is paid up at the time of purchase.
All the following are true about universal life insurance EXCEPT
Although cash value increase, the death benefit is a fixed amount.
The name for an insurance plan combing life insurance and equity investment under which the benefits are not fixed, and depends upon performance of the investment is
Variable Life
All of the following are true about term life insurance EXCEPT?
Term insurance is the one of the lease expensive forms of protection for older individuals.
A life insurance policy that expires without value if the insured lives beyond the expiration date is.
Term Insurance