chapter 2

Question 1

• Term Life Policy for Limited Financial Resources:

Answer 1

highest coverage for those with limited financial resources.

Question 2

• Renewable Term Policy

Answer 2

The renewal premium is based on the insured’s attained age.

Question 3

• Renewable Term Policies:

Answer 3

Guarantee the insured the right to continue term coverage after the expiration date.

Question 4

• Convertible Term Policy:

Answer 4

converting to a whole life policy without evidence of insurability.

Question 5

• Permanent Protection with Lowest Premium:

Answer 5

Whole life insurance generally provides permanent protection at the lowest annual premium.

Question 6

• Straight Life Annuities:

Answer 6

generally provide the highest monthly payout.

Question 7

• Limited-Pay Life Policy:

Answer 7

pay premiums for a predetermined period that is shorter than for a straight life policy

Question 8

• Limited-Pay Life Policies:

Answer 8

where premiums are paid for a limited time.

Question 9

• Universal Life:

Answer 9

life insurance for flexible premium payments

Question 10

• Variable Life Policy:

Answer 10

Allows the policyowner to select where cash values are invested.

Question 11

• Variable Universal Life:

Answer 11

flexibility in premium payments, premium payment period, and death benefit.

Question 12

• Variable Annuity:

Answer 12

Pays based on units rather than specific dollar amounts.

Question 13

• Immediate Annuity:

Answer 13

Requires a single premium and provides immediate income payments, one period after purchase.