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IL Life Insurance exam (1) Questions & 100% Verified Correct Answers with complete solutions (Latest update
IL Life Insurance exam (1) Questions & 100% Verified Correct Answers with complete solutions (Latest update
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IL Life Insurance examstraight life annuity income option provides for annuity payments to the annuitant for as long as
he or she lives - ANS-ordinary straight life
premium paying period is limited by the policy owner to a specified age of time or to a specific
age. protection to age 100 - ANS-limited pay
pay one premium protection to age 100 - ANS-single premium life
lvl premiums and death benefits. combo of term and whole life. - ANS-adjustable life
term to whole life or whole life to term - ANS-convertible term
Flexible Premium dont have to pay the policy owner can determine his own face amount and
frequency of future premium payments. - ANS-Universal life
money goes into separate accounts - ANS-variable whole life money
policy contains unsheduled premium payments and death benefits and cash value that varies
according to the underlying funds whose investment portfolio is managed by the policy owner. -
ANS-variable universal life
current assumption life. cash value can grow beyond guaranteed levels policy owner can
increase premiums or reduce face amount declaring an interest rate. - ANS-interest sensitive
whole life
face amount remains lvl for entire policy. both premium and face amount remain level. -
ANS-level term
face amount decreases.
every year coverage goes down. - ANS-decreasing term
policy that returns premiums paid for coverage if the insured party survives the policys term -
ANS-return of premium
renews a certain amount each year - ANS-annually renewable
both the face amount and premium increase - ANS-increasing term
renew the term insurance on the anniversary date, without a medical and the premium are
based on your attained age. - ANS-renewable
, change the policy to a permanent at expiration of term coverage. based on your attained age
without proof of insurability - ANS-convertible term
insurance contract issued by the insurance company you put money in contract in return
company pays you in future. - ANS-annuities
you put in one payment - ANS-single premium
policy allows you to change your premium payments, depending on the policy value and your
current financial needs. - ANS-flexible premium
start receiving payments within a month. require a lump sum payment. (used to fund the lotto) -
ANS-immediate annuity
Ex. is IRA. contribute over a period of time. (accumulation period)
(withdrawing is known as the annuity period). - ANS-deferred annuity
investments will go into the general account of the issuing company and will be backed with
there assets - ANS-Fixed annuity
investment will go into a seperate accound and be invested in the stock market - ANS-variable
annuity
company must pay a certain rate - ANS-indexed based fixed annuity
payments are based on two annuitants however the payments stop when the first annuitant dies
- ANS-joint life annuity
when the first annuitant dies the second will still receive money for the rest of their life -
ANS-survivor annuitant
must be selected at the time of the application. disability must be permanent and total. 6 month
waiting period. premiums must be paid than refunded. - ANS-waiver of premium rider
purchase insurance at a certain specified ages without proof of insurability usually up to age 40.
( the insured provides proof of insurability once for the original policy only not for the additional
purchases - ANS-guaranteed insurability
(juvenile Life) applicants waiver of premium is used when the premium payor is disabled or dies
- ANS-payor benefit
usually pay twice the face amount if accident
*** if 100k coverage then pay 200k. - ANS-accidental death
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