Ins 3

Question 1

Insureds age at time policy is issued or renewed

Answer 1

Attained age

Question 2

Policy’s Savings element or living benefit

Answer 2

Cash value

Question 3

Amount of benefit stated in life ins policy

Answer 3

Face amount

Question 4

Withheld or postponed until a specified time or event in future

Answer 4

Deferred

Question 5

Cash value of whole life policy reaches contractual face amount

Answer 5

Endow

Question 6

Premium that doesn’t change throughout the life of a policy

Answer 6

Level premium

Question 7

Converting net worth to a cash flow

Answer 7

Liquidation of estate

Question 8

Benefits in a life ins policy that the policy owner cannot lose even if policy is surrendered or lapses

Answer 8

Nonfortfeiture values

Question 9

In life policies time when the face value is paid out

Answer 9

Policy maturity

Question 10

Financial instruments that may trade for value
Stocks bonds options

Answer 10

Securities

Question 11

Three basic types of term coverage based on how the face amount/death benefit changes during policy term

Answer 11

Level
Decreasing
Increasing

Question 12

Regarding length of coverage all life ins policies fall into two categories:

Answer 12

Temporary and permanent protection

Question 13

it only provides coverage for a specific period of time
Aka pure life insurance

Answer 13

Term insurance

Question 14

Provide greatest amount of coverage for lowest premium compared to any other form of protection
Usuall maximum age not covered or cannot be renewed

Answer 14

Term insurance

Question 15

Regardless Of type of term ins

Answer 15

Premium is level throughout term of policy

Question 16

Only the amount of the death benefit may fluctuate

Answer 16

Depending on the type of term insurance

Question 17

Upon selling renewing converting term policy Premium is figured

Answer 17

At attained age at time of transaction

Question 18

The most common type of temporary protection purchased

Answer 18

Level term insurance

Question 19

Purest form of term insurance

Answer 19

Annually renewable term art

Question 20

Death benefit remains level and policy may be guaranteed to be renewable each year without proof of insurability but premium increases annually according to the attained age as probability of death increases

Answer 20

Art annually renewable term

Question 21

Feature level premium and features benefit that decreases each year over duration of policy term

Answer 21

Decreased term policies

Question 22

Used to insure payment of mortgage or other debts If insured dies prematurely

Answer 22

Decreasing term

Question 23

Decreasing term policy is usually

Answer 23

Convertible however not renewable since benefit is 0 at end of term

Question 24

An increasing term policy that pays an additional benefit to beneficiary equal to amount of premiums paid

Answer 24

Return of premium rop

Question 25

In rop, Return Of premium is paid if death occurs within specified period of time or

Answer 25

If the insured outlived the policy term

Question 26

Annually renewable term is

Answer 26

Form of level ins that offers the most ins at the lowest cost

Question 27

Which policy component decreases in decreasing term ins

Answer 27

Face amount

Question 28

Death benefit remains level but premium increases each year with insureds attained age

Answer 28

Annually renewable term

Question 29

Least expensive first year premium found in

Answer 29

Annually renewable term

Question 30

Twenty year term policy is

Answer 30

level death benefit for twenty years

Question 31

Will pay benefit if insured dies during 20 year premium paying period and nothing if dies after

Answer 31

Level term

Question 32

Term policies do not develop

Answer 32

Cash values

Question 33

regarding decreasing term policy it is not true that

Answer 33

Payable premium steadily declined throughout the duration of contract

Question 34

Premiums remain level with a decreasing term policy and

Answer 34

Only the face amount decreases

Question 35

Man purchased 100000 annually renewable term life policy to provide additional protection until kids done college. Discovered that

Answer 35

Policy requires a premium increase each renewal

Question 36

Borrowed 10000 on five year installment loan w monthly payments Which life policy would be best

Answer 36

Decreasing Bc face amount Decreases

Question 37

Face amount decreases with

Answer 37

Decreasing term

Question 38

Level death benefit Increase annually with age of insured

Answer 38

Annual renewable policies