Exam (elaborations)
Chapter Four Exam 1 Type Of Insurance Policies Xcel Questions With Answers.
- Course
- Institution
Chapter Four Exam 1 Type Of Insurance Policies Xcel Questions With Answers.
[Show more]
Content preview
Chapter Four Exam 1 Type Of InsurancePolicies Xcel Questions With Answers.
P is looking to purchase a life insurance policy that will pay a stated monthly income to
his beneficiaries for 20 years after he dies and a lump sum of $20,000 at the end of that
20 year period. What type of policy should P purchase? - ANSWER- Family
Maintenance Policy
Life insurance that covers an insureds Whole life with level premiums paid over a limited
time is called - ANSWER- Limited pay whole life
Which is true concerning a variable universal life policy - ANSWER- Policy owner
Controls where the investment will go and selects the amount of the premium payment
Which of these life product is not considered interest-sensitive - ANSWER- Modified
whole life
S is covered by a whole life policy. Which insurance product can cover his children? -
ANSWER- Child term rider
All of these are characteristics of an adjustable life policy except - ANSWER- face
amount can be adjusted using policy dividends
What advantage does an equity indexed insurance policy have over a variable life policy
- ANSWER- A minimum guaranteed rate of return
What kind of life insurance product covers children they are parents policy - ANSWER-
A term rider
What kind of life insurance offers the policy owner a cash value that is invested in a
separate account - ANSWER- Variable life
Universal life insurance offers which of these features - ANSWER- Flexible premium
and flexible face amount
A father who dies in three years after purchasing a life insurance policy on his infant
daughter can have the policy premiums waved under which provision - ANSWER- Pay
or provision
What kind of insurance policy supplies an income stream over a set period of time that
starts when the insured dies? - ANSWER- Family Maintenance Policy
, K buys a policy where the premium stays fixed for the first 5 years. The premium then
increases in year 6 and stays level thereafter, all the while the death benefit remains the
same. What kind of policy is this? - ANSWER- Modified Whole Life
A 15-year mortgage is best protected by what kind of life policy? - ANSWER- 15-year
decreasing term
A life insurance policy that fails the 7-pay test is considered to be a modified
endowment contract. This type of policy will. - ANSWER- Lose certain tax advantages
A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of these
statements made by the producer would be correct? - ANSWER- 20-Pay Life
accumulates cash value faster than Straight Life
D needs life insurance that provides coverage for only a limited amount of time while
also paying the lowest possible premium. What kind of policy is needed? - ANSWER-
Level term
A modified life policy has similar characteristics and serves the same purpose as -
ANSWER- Graded premium whole life
Which statement is true regarding a variable whole life policy? - ANSWER- A minimum
guaranteed Death benefit is provided
A husband and wife own a life insurance policy with their son named as a beneficiary.
The wife dies first followed by the husband five years later. Their son received the policy
face amount after his father died. What type of policy was owned? - ANSWER-
Survivorship life
A life insurance policy that offers cash value and is influenced by S & P with a
guaranteed minimum rate of return is called - ANSWER- Equity index life
What kind of premium does a Whole Life policy have? - ANSWER- level
G purchased a Family Income policy at age 40, The policy has a 20-year rider period. If
G were to die at age 50, how long would G's family receive an income? - ANSWER- 10
years
A life insurance policy that covers multiple insureds Ian pays the face amount following
the death of the last insured is called - ANSWER- A survivorship life
What kind of life insurance policy pays a specified monthly income to a beneficiary for
30 years and then pays a lump sum benefit at the end of that 30 years? - ANSWER-
Family Maintenance Policy
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Divinehub. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81989 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now