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LIFE INSURANCE ACTUAL FINAL EXAM
WITH REAL QUESTIONS AND VERIFIED
CORRECT ANSWERS | ALREADY GRADED A+ |
GUARANTEED SUCCESS | LIFE INSURANCE
LATEST VERSION [BRAND NEW!!]
Which of these policies is considered a whole life policy?
- Credit life
- Single premium life
- Renewable life
- Convertible life - ANSWER- B. Single premium life
What type of life insurance policy covers two or more persons and pays the face amount upon the death of the first insured?
- Joint and survivorship
- Survivorship life
- Universal life
- Joint life - ANSWER- D. Joint life
Rick owns a variable universal life policy and chooses a variable death benefit option. What will typically happen to the death benefit as a result of this selection? 1 / 4
- Remain the same
- Decrease but never increase
- Increase but never decrease
- Fluctuate with changes in the cash account - ANSWER- D. Fluctuate with
changes in the cash account
An individual who purchases a modified life insurance policy expects
- a higher rate of return
- coverage for two people
- an improvement in future income
- a flexible face amount - ANSWER- C. an improvement in future income
Assets that back the non-guaranteed values of variable life insurance products are held in which account?
- Trust account set up by the insured
- Separate account set up by the insurer
- General account of the insurer
- Money market account - ANSWER- B. Separate account set up by the insurer
When a ten year renewable term life insurance policy issued at age 45 is renewed, the premium rate will be the current rate for
- Ten year term insurance for a person aged 55 2 / 4
- Ten year term insurance for a person aged 45
- Yearly renewable term insurance for a person aged 55
- Yearly renewable term insurance for a person aged 45 - ANSWER- A. Ten
year term insurance for a person aged 55
What kind of life policy typically offers mortgage protection?
- Whole life
- Decreasing term
- Increasing term
- Level term - ANSWER- B. Decreasing term
How does a continuous premium whole life policy differ from a limited pay whole life policy?
- The time period in which premiums will be paid
- The availability of cash value loans
- The availability of nonforfeiture options
- The settlement options - ANSWER- A. The time period in which premiums will
be paid
What type of premiums are associated with individual mortgage protection life insurance policies?
- Level premiums
- Flexible premiums
- Modified premiums 3 / 4
- Decreasing premiums - ANSWER- A. Level premiums
Taxable income may be the result from all of these modified endowment contract (MEC) transactions EXCEPT for
- A cash value loan is taken out
- Automatic premium loan provision is utilized
- The policy is surrendered for less than what was paid into it
- Dividend is issued - ANSWER- C. The policy is surrendered for less than what
was paid into it
What kind of life insurance policy allows a policyowner the choice of investments along with flexible premium payments?
- Variable universal life
- Modified endowment contract
- Adjustable life
- Graded premium whole life - ANSWER- A. Variable universal life
All of these statements concerning universal life insurance are false EXCEPT
- Death benefits are normally taxable
- Policy loans are not permitted
- Premiums or face amount cannot be changed
- Policy indicates how much of the premium is used toward company expenses -
- / 4
ANSWER- D. Policy indicates how much of the premium is used toward company expenses
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