Basic Life Ins Policies

Question 1

issues very small face amounts, such as $1,000 or $2,000. Premiums paid weekly to debit agents.
- designed for burial coverage.

Answer 1

Industrial Life

Question 2

coverage is provided to the members of that group under one master contract, underwritten as a whole.

Answer 2

Group Life

Question 3

made up of several types of individual life insurance, such as temporary (term), permanent (whole).

Answer 3

Ordinary Life

Question 4

written to cover a need for a specified period of time at the lowest premium is called

Answer 4

Level Term Insurance / Level premium level term

Question 5

• provides an annually decreasing face amount over time with
• level premiums.

usually used for mortgage protection.

Answer 5

Decreasing term life insurance

Question 6

provides an increasing face amount over time, based on specific amounts or a % of the original face amount.

Answer 6

Increasing term life insurance

Question 7

allows policyowners to convert their term insurance into permanent policies without showing proof of insurability.

Answer 7

Convertible term life insurance

Question 8

guarantees the insured the right to continue term coverage after expiration of the initial policy period without having to prove insurability.

Answer 8

Renewable term

Question 9

Provides a level face amount that is guaranteed renewable annually without proof of insurability.

Answer 9

Annual renewable term

Question 10

Provides both living and death benefits.

• permanent life insurance protection for entire life.
• living benefits such as cash value and policy loans.
• matures at age 100 and normally has a level premium.

Answer 10

Whole life insurance

Question 11

There are several types of whole life, all with the same type of benefits. The only difference in “types” of whole life is how the policy is paid. T/F

Answer 11

True

Question 12

All whole life lasts until death or age ____, has a ________ premium, and level benefit with cash value accumulation, regardless of how it is paid.

Answer 12

100; level

Question 13

Types of whole life insurance include

Answer 13

straight whole life
limited pay whole life
single-premium whole life
modified whole life
graded whole life

Question 14

basic whole life ins. with:

• level face amount
• fixed premium payments made until death of insured or age 100 (maturity of policy).

Answer 14

Straight Whole Life

Question 15

whole life insurance where the insured is covered for his entire life,
but premiums are paid for a limited time.

Answer 15

Limited Pay Whole Life

Question 16

With Limited Pay Whole life insurance, as the premium payment period shortens, cash values increase faster and the fixed premiums are _________.

Answer 16

Higher

Question 17

paying the entire premium in one lump-sum to have coverage for the insured’s entire life is what type of Whole Life insurance?

Answer 17

Single Premium Whole Life

Question 18

Whole life ins. with
- Low premiums in the early years - jumps to a higher premium in the later years and remains fixed thereafter.
Premiums increase just once.

Answer 18

Modified whole life

Question 19

Whole life ins. where the premium increases yearly for a stated number of years,
then remains level.

Answer 19

Graded Whole life