FL 2-15 types of life insurance policies
Exam Questions and Answers
face amount - correct Answer-what policy component must decrease in decreasing term
insurance?
no, an annuitant must always be a natural person - correct Answer-can a business or a
corporation be an annuitant?
beneficiary - correct Answer-if the annuitant dies during the accumulation period, who
will receive the annuity benefits?
limited-pay whole life - correct Answer-a whole life policy that requires that the
policyowner only pays premiums for a specified number of years is known as what kind
of policy?
universal life - correct Answer-in what type of life insurance policies can the policyowner
skip premium payments without the policy lapsing?
the full death benefit - correct Answer-whole life insurance policies mature when the
insured reaches the age of 100. if the owner of a whole life policy (the insured) dies at
age 80, and there are no outstanding loans on the policy, what portion of the death
benefit will be paid to the beneficiary?
single premium whole life - correct Answer-what type of whole life insurance policy
generates immediate cash value?
equity indexed annuity - correct Answer-what type of annuity credits its interest based
upon an index such as S&P 500?
- correct Answer-under a 20-pay whole life policy, in order for the policy to pay the
death benefit to a beneficiary, the premiums must be paid
limited-pay whole life - correct Answer-what type of life insurance policy is life paid-up at
age 65?
the premium increases with each renewal - correct Answer-what happens to the
premium in annually renewable term life policy?
there is no cash value to borrow against - correct Answer-why are policy loans not
available on term insurance?
, decreasing term - correct Answer-an individual has just borrowed $10,000 on a 5-year
note from his bank. the note is due in installments. what type of life insurance policy
would be best suited to this situation?
life expectancy and the death rates for specific groups of individuals - correct Answer-
mortality tables are used by insurance companies to predict what?
the number of payments that purchase the annuity - correct Answer-what is the
difference between a single premium and a flexible premium payment options in a
deferred annuity?
a level premium for the life of the insured - correct Answer-what type of premium is
charged on a straight life policy?
the premium is based on the average age of the insureds - correct Answer-how is the
premium determined in a joint life insurance policy?
upon the first death - correct Answer-in a joint life policy, when is the death benefit paid?
the insurer - correct Answer-who bears the investment risk in a fixed annuity?
immediate and deferred - correct Answer-what are the two classifications of annuities
according to the time when annuity payments begin?
term - correct Answer-what type of life insurance policy offers pure death protection?
age 100 - correct Answer-whole life policies provide protection until the insured reaches
what age?
flexible premium deferred annuity - correct Answer-an annuity purchased with multiple
payments that begin income payments after one year from the moment of purchase is
known as what type of annuity?
accumulation and annuitization (or pay-in and pay-out) - correct Answer-what are the
two phases of an annuity?
variable annuity - correct Answer-what type of annuity requires an agent to have a
securities license?
decreasing term - correct Answer-what type of life insurance is best suited to cover a
mortgage?
face amount - correct Answer-what does the term "level" refer to in level term
insurance?
Exam Questions and Answers
face amount - correct Answer-what policy component must decrease in decreasing term
insurance?
no, an annuitant must always be a natural person - correct Answer-can a business or a
corporation be an annuitant?
beneficiary - correct Answer-if the annuitant dies during the accumulation period, who
will receive the annuity benefits?
limited-pay whole life - correct Answer-a whole life policy that requires that the
policyowner only pays premiums for a specified number of years is known as what kind
of policy?
universal life - correct Answer-in what type of life insurance policies can the policyowner
skip premium payments without the policy lapsing?
the full death benefit - correct Answer-whole life insurance policies mature when the
insured reaches the age of 100. if the owner of a whole life policy (the insured) dies at
age 80, and there are no outstanding loans on the policy, what portion of the death
benefit will be paid to the beneficiary?
single premium whole life - correct Answer-what type of whole life insurance policy
generates immediate cash value?
equity indexed annuity - correct Answer-what type of annuity credits its interest based
upon an index such as S&P 500?
- correct Answer-under a 20-pay whole life policy, in order for the policy to pay the
death benefit to a beneficiary, the premiums must be paid
limited-pay whole life - correct Answer-what type of life insurance policy is life paid-up at
age 65?
the premium increases with each renewal - correct Answer-what happens to the
premium in annually renewable term life policy?
there is no cash value to borrow against - correct Answer-why are policy loans not
available on term insurance?
, decreasing term - correct Answer-an individual has just borrowed $10,000 on a 5-year
note from his bank. the note is due in installments. what type of life insurance policy
would be best suited to this situation?
life expectancy and the death rates for specific groups of individuals - correct Answer-
mortality tables are used by insurance companies to predict what?
the number of payments that purchase the annuity - correct Answer-what is the
difference between a single premium and a flexible premium payment options in a
deferred annuity?
a level premium for the life of the insured - correct Answer-what type of premium is
charged on a straight life policy?
the premium is based on the average age of the insureds - correct Answer-how is the
premium determined in a joint life insurance policy?
upon the first death - correct Answer-in a joint life policy, when is the death benefit paid?
the insurer - correct Answer-who bears the investment risk in a fixed annuity?
immediate and deferred - correct Answer-what are the two classifications of annuities
according to the time when annuity payments begin?
term - correct Answer-what type of life insurance policy offers pure death protection?
age 100 - correct Answer-whole life policies provide protection until the insured reaches
what age?
flexible premium deferred annuity - correct Answer-an annuity purchased with multiple
payments that begin income payments after one year from the moment of purchase is
known as what type of annuity?
accumulation and annuitization (or pay-in and pay-out) - correct Answer-what are the
two phases of an annuity?
variable annuity - correct Answer-what type of annuity requires an agent to have a
securities license?
decreasing term - correct Answer-what type of life insurance is best suited to cover a
mortgage?
face amount - correct Answer-what does the term "level" refer to in level term
insurance?
