Untitled document

docx

School

Brigham Young University, Idaho *

*We aren’t endorsed by this school

Course

101

Subject

Finance

Date

Apr 3, 2024

Type

docx

Pages

Uploaded by Pintymin

Type of Life Policies 1. Which of the following is another term for the accumulation period of an annuity? Pay-in period 2. Which of the following best describes annually renewable term insurance? It is level term insurance 3. In an annuity, the accumulated money is converted into a stream of income during which time period? Annuitization period 4. Which of the following is TRUE regarding variable annuities? The annuitant assumes the risks on investment. 5. An annuity owner is funding an annuity that will supplement her retirement.Because she doesn't know what effect inflation may have on her retirement dollars,she would like return that will equal the performance of the standard and poor 500 Index.She would likely purchases an Equity Indexed Annuity. 6. The policyowner of an adjustable life policy wants to increase the death benefit.Which of the following statements is correct regarding this change? The death benefit can be increased by providing evidence of insurability. 7. An individual has been making periodic premium payments on annuity. The annuity income payments are scheduled to begin after 1 year since the annuity was purchased.What type of annuity is it? Deferred 8. In joint life policies,the death benefit is paid upon the first death only. 9. Which of the following products requires a securities license? Variable annuity 10.An insurance policy that only requires a payment of premium at its inception,provides insurance protection for the life of the insured,and matures at the insured’s age 100 is called Single premium whole life 11.Which of the following types of policies allows for a flexible premium and a variable investment component? Variable universal life insurance 12.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 13.Which of the following products provides income for a specified period of years or for life, and protects a person against outliving their money? An annuity 14.Which of the following determines the cash value of a variable life policy? The performance of the policy portfolio

15.Which of the following is NOT one of the three types of term converges based on what happened to the face amount during the policy term? Renewable 16.All of the following are true about variable products EXCEPT The premiums are invested in the insurer’s general account 17.The policyowner of a Universal life policy may skip paying the premium and wii not lapse as long as The policy contains sufficient value to cover the coast of insurance. 18.Who bears all of the investment risk in a fixed annuity? The insurance company 19.AReturn of Premium term life policy is written as what type of term coverage? Increasing 20.All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT Upon conversion,the death benefit of the permanent policy will be reduced by 50% 21.All of the following entities regulate variable life policies except The Guaranty Association 22.What are the two components of a universal policy? Insurance and cash account 23.Which statement is NOT true regarding a Straight Life policy? Its premium steadily decreases over time, in response to its growing cash value 24.Which of the following statements is correct regarding Whole Life policy? The policyowner is entitled to policy loans 25.What is another name for interest-sensitive whole life insurance? Current assumption life 26.Fixed annuities provide all of the following EXCEPT Hedge against inflation 27.Which of the following is called a ‘second-to-die’ policy? Survivorship life 28.All of the following are true of an annuity owner EXCEPT The owner must be the party to receive benefits 29.The minimum interest rate on an equity indexed annuity is often based on An index Standard &Poor’s 500 30.Which policy component decreases in decreasing term insurance? Face amount 31.Under a 20-pay whole life policy,in order for the policy to pay the death benefit to a beneficiary the premiums must be paid For 20 years or until death,whichever occurs first 32.If the annuitant dies during the accumulation period,who will receive the annuity benefits?

The beneficiary 33.in a survivorship life policy,when dies the insurer pay the death benefit? Upon the last death 34.A married couple owns a permanent policy which covers both of their lives and pays the death benefit only upon the death of the first insured.Which policy is that? Joint Life Policy 35.An insured purchased a life insurance policy. The agent told him that depending upon the company’s investment and expense factors,the cash value could change from those shown in the policy at issue time.The policy is a/an Interest-sensitive Whole Life 36.The term “fixed’ in a fixed annuity refers to all of the following EXCPT Death benefit 37.What is the purpose of establishing the target premium for universal life policy? To keep the policy in force 38.Which of the following is NOT true regarding the annuitant/ The annuitant cannot be the same person as the annuity owner 39.An agent selling variable annuities must be registered with FINFA 40.If the owner of a whole life policy who is also the insured die at age 80, and there are no outstanding loans on the policy,what portion of the death benefit will be paid to the beneficiary? A full death benefit 41.In an annuity,the accumulated money is converted into a stream of income during which time period? Annuitization period 43.What does “level” refer to in level term insurance? Face amount 44.The main difference between immediate and deferred annuities is When the income payments begin 45.A straight life policy has what type of premium? A level annual premium for the life insured 46.Which of the following life insurance policies allows a policyowner to take out a loan from the policy’s cash value? Variable universal life 47.In which of the following cases will the insured be able to receive the full face amount from a whole life policy? If the insured lives to age 100 48.What type of life insurance policy generates immediate cash value? Single premium 49.Why is an equity indexed annuity considered to be a fixed annuity/

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

It has a guaranteed minimum interest rate 50.Which of the following is INCORRECT regarding a $100000 20-years level term policy? At the end of 20 years,the policy’s cash value will equal $100000 51.Variable Whole Life insurance is based on what type of premium? Level Fixed 52.Which of the following is TRUE regarding the accumulation period of an annuity? It is a period during which the payments into the annuity grow tax deferred 53.The LEAST expensive first year premium is found in which of the following policies? Annually Renewable Term 54.Which of the following best defines the target premium in a universal life policy? The recommended amount to keep the policy in force throughout its lifetime 55.The premium of a survivorship life policy compared with that of a joint life policy would be Lower 56.Which of the following is TRUE regarding the premium in term policies? The Premium is level for the term of the policy 57.Whcih of the following would help prevent a universal life policy from lapsing? Target premium 58.