LOMA 281 Module 2 Lesson 1 - Term Life Insurance ACCURATE 100%
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Module
LOMA 281
Institution
LOMA 281
Assume that Caryer has life insurance on his own life. Select the box beside each financial need that you think life insurance can meet
Paying household expenses (utility bills, food, clothing, etc)
Covering outstanding debts (mortgage and car loans, etc)
Paying future outstanding medical, hos...
LOMA 281 Module 2
Lesson 1 - Term Life
Insurance ACCURATE
100%
Assume that Caryer has life insurance on his own life. Select the box beside each financial need that you
think life insurance can meet
Covering outstanding debts (mortgage and car loans, etc)
Paying future outstanding medical, hospital, and funeral expenses
Providing financial support for the family
Funding a child's education - ANSWER All the above
Term Life Insurance - ANSWER Life Insurance that provides a death benefit only if the insured dies during
the period specified in the policy
True or False:
Few policy terms are shorter than one year - ANSWER True
, Level Term Insurance - ANSWER Term life insurance that provides a policy benefit that remains the same
over the term of the policy. Simplest form of term life insurance
Decreasing Term Life Insurance - ANSWER Term life insurance that provides a policy benefit that
decreases in amount over the term of coverage
Mortgage Insurance - ANSWER A plan of decreasing term insurance designed to provide a benefit
amount that corresponds to the decreasing amount owed on a mortgage loan
When Michael bought a house, he obtained a mortgage loan from the Archway Bank. He also bought a
mortgage insurance policy from Able Life. Is Archway Bank a party to Michael's mortgage insurance
contract with Able Life? - ANSWER No - the mortgage loan and the insurance contract are two separate
transactions
Return of Premium (ROP) Term Insurance - ANSWER A form of term life insurance that provides a death
benefit if the insured dies during the policy term and promises a return of premiums if the insured does
not die during the the policy term
Renewable Term Insurance - ANSWER Term life insurance that gives the policyowner the option to
continue the policy's coverage at the end of the specified term without presenting evidence of
insurability (proof that a given person is an insurable risk)
Suppose Carter buys a renewable term insurance policy. Do you think he can renew the policy as many
times as he wants? - ANSWER No - the policy can only be renewed a maximum number of times before
the age limit is reached
Suppose Blythe renews her $100,000 20 year renewable policy at the end of the policy term. Do you
think the amount of coverage is automatically cut in half to $50,000? - ANSWER No - the amount
charged typically remains the same after policy renewable... However she will have to pay a higher
premium based on the attained age at the time of renewal
Convertible Term Insurance - ANSWER Term life insurance that gives the policyowner the right to convert
the term policy to a cash value life insurance policy without providing evidence of insurability.
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