Life Insurance

Question 1

Whole life

Answer 1

Straight
Modified
Limited pay
Variable. Owner selects investments

Question 2

Variable vs universal

Answer 2

Life. Insurer invests. Premium bundled
Variable. Insured invests. Premium bundled. As long as willing to pay premium will get paid the face amount.
Universal. Insurer invests. Premium unbundled can put more money in interest.
Variable universal - Unbundled premium and insured able to decide where they want to invest

Question 3

Three components of insurance

Answer 3

Mortality
Interest
Expenses

=. Premium

Question 4

Viatical agreements

Answer 4

Terminal ill
Hippa codified. Purchaser 
Death benefit taxable as an investment
Short term. Long term cap gain
Diff between what paid and recd upon death

Question 5

Dividends. Return of excess premium

Answer 5

Cash taxable
Reduce premium.  Once exceed basis taxable
Purchase paid up additions
Accumulate at interest
One year term insurance.

Question 6

Non forfeiture

Answer 6

Cash surrender value
Reduce paid up insurance
Extended term insurance

Question 7

Life insurance settlement options.

Dean and so is policy

Answer 7

Interest option
Fixed period
Fixed amount
Life income

Question 8

Linton

Answer 8

Compares cash value life insurance with buy term and invest difference