What determines the cash value of a variable life policy?
The performance of the policy portfolio
during a partial withdrawl from a universal life policy, which portion will be taxed?
Interest
What is an example of a limited-pay life policy?
Life paid up at Age 65
if the annuitant dies during the accumulation period, who will receieve the annuity benefits?
Beneficiary
When an annuity is written, whose life expectancy is taken into account?
Annuitant.
What best describes the annuity period?
the period of time during which accumulated money is converted into income payments
Which type of life insurance policy allows the policywoner to pay more or less than the planned premium?
Universal Life
Universal Life
The policyowner has the flexibility to increase the amount of premium going into the policy and can decrease it later if they want. The policyowner can actually skip a payment as long as there is sufficant cash value in the account.
who assumes the risk in variable annuities?
The annuitant
What best defines target premium in a universal life policy?
The recommended amount to keep the policy in force throughout its lifetime
what policy allows the policyowner to skip premium payments, as long as there's enough cash value in the policy to cover the premium amount?
Universal Life
The least expensive first-year premium payment is found in
Annually Renewable Term
Twin brothers are starting a new business. They know it will take several years to build the business to the point that they can pay off the debt incurred in starting the business. what type of insurance would be the most affordable and still provide a de
Joint life. because in a join life policy the premiums are based on an average age, and it would pay a death befefit only at the first death
The type of policy that can be changed from one that doesn't accumulate cash value to one that does is a
Convertible Term Policy.
what is the "annuity period" ?
The time during which accumulated money is converted into an income stream. it may last for the lifetime of the annuitant or for a shorter specified periods of time depending on the benefit payment option selected
What do Whole life policies offer?
level premium based on the issue age, guaranteed , level death benefit, cash value that is scheduled to equal the face amount at the insured's age 100, and living benefits, which include policy loans