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TN Life and Health Insurance Exam 215 Questions with Verified Answers,100% CORRECT
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TN Life and Health Insurance Exam 215 Questions with Verified Answers
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TN Life and Health Insurance Exam 215 Questions withVerified Answers
Term - CORRECT ANSWER period of time
Term life insurance - CORRECT ANSWER life insurance policy that provides
temporary coverage
Term life insurance - CORRECT ANSWER least expensive, cheap, or very low
premium life insurance policy
face amount/face value - CORRECT ANSWER the amount paid to the beneficiary
at the insured's death
on the 1st page of the policy/contract - CORRECT ANSWER where is the face value
for a policy listed?
group life insurance - CORRECT ANSWER term life insurance that employer
provides to employees; usually $10,000
$50,000 - CORRECT ANSWER what is the maximum amount the employer can
provide to an employee without you paying tax?
D - CORRECT ANSWER How much of the group life of $75,000 would be taxable to
the beneficiary?
A. $25,000
B. $75,000
C. $50,000
D. none
renewable - CORRECT ANSWER right of the policyholder to renew the policy at
the end of the term
convertible - CORRECT ANSWER right of the policyholder to change their
temporary/term coverage to whole life/permanent protection
,B - CORRECT ANSWER You may convert your group life at termination of
employment to?
A. term
B. whole life
C. either a or b
D. none of these
level term - CORRECT ANSWER the face amount and the premium stay the same
for the policy period or term
decreasing term - CORRECT ANSWER the face amount decreases for the life of the
policy down to zero at the end of the term or expiration date of the contract
credit life - CORRECT ANSWER pays off the balance of a loan at insured's death
increasing term - CORRECT ANSWER the face amount increases for the life of the
policy; starts at zero/no value; not sold very often
return of premium - CORRECT ANSWER a rider that at death pays an additional
amount of money equal to all premiums paid up to your time of death
annually renewable - CORRECT ANSWER expires each year, but is renewable for
another year; premium increases each year
whole life - CORRECT ANSWER life insurance policy that covers the whole of life or
to age 100
continuous pay - CORRECT ANSWER pay the same premium until age 100 when
the policy pays off to owner
limited pay - CORRECT ANSWER premium is paid up before age 100; higher
premium and higher cash value
single pay - CORRECT ANSWER premium is paid up in one payment
20 Pay Life - CORRECT ANSWER premium is paid up in 20 yrs
, Life Paid Up at 65 - CORRECT ANSWER premium paid up at age 65
modified whole life - CORRECT ANSWER premium begins very low (term) and
changes to whole life with one raise in premium after 3-5 years then premium is
constant for life of policy
graded premium whole life - CORRECT ANSWER premium begins very low (term)
and raises each year for 5-10 years then premium is constant for life of policy
endowment - CORRECT ANSWER policy matures before age 100 at a specific age
or date; higher premium and cash value
pure endowment - CORRECT ANSWER endowment that will pay off only if the
insured lives to maturity
adjustable life insurance - CORRECT ANSWER allows the insured to adjust the
premium, face amount, and term
universal life insurance - CORRECT ANSWER policy where most all of the premium
is invested in a cash value account earning competitive current interest rates and
the rest of the premium buys term for the face amount needed
variable life insurance - CORRECT ANSWER insurance company invests premium in
stock market; hedge against inflation
scheduled premium variable life - CORRECT ANSWER the amount being paid and
the dates of payment are known; minimum death payment; can borrow 75-90%
of cash value
flexible premium variable life - CORRECT ANSWER the amount of premium to be
paid and the payment date are both unknown; no guaranteed cash value/death
benefit; owner cannot borrow on this policy
variable universal life insurance - CORRECT ANSWER the insured directs the
insurance company exactly where to invest their premiums; requires a lot of
investing experience
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