NY Life -Chapter 3 Life Insurance
Policies Study Guide Questions and
Actual Answers 2026-2027 Updated.
What type of whole life insurance policies only requires a payment of premium at its inception,
and in addition to providing insurance protection for the life of the insured, endows at the
insured's age 100? - Answer Single premium whole life
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? - Answer Limited pay whole life
An individual has just borrowed $10,000 on a five year note from his bank. The note is due in
installments. What type of life insurance policy would be best suited for this situation? - Answer
Decreasing term
What type of life insurance policy is life paid-up at age 65? - Answer Limited-pay whole life (LP
Whole Life)
How is the premium determined in a joint life insurance policy? - Answer The premium is
based on the average age of the insureds.
The death component of a universal life policy is expressed as what type of coverage? - Answer
Annually renewable term
What is the major difference between the most common types of whole life policies: straight
life, limited payment and single premium? - Answer Premium payment mode
In term policies, what happens to the premium throughout the term of the policy? - Answer
The premium remains level
STAYS THE SAME
What is the purpose of establishing the target premium for a universal life policy? - Answer To
prevent the policy from lapsing
What type of insurance is best suited to cover a mortgage? - Answer Decreasing term
In variable universal life insurance, to what policy component does the term variable refer? -
Answer Cash value and death benefit
, Whole life insurance policies mature when the insured reaches the age of 100. If the owner of a
whole life policy 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. - Answer The full death benefit
The policyowner of a whole life insurance policy is also the insured. What age must be insured
attain in order to receive the policy's face amount? - Answer Age 100
What does level refer to in level term insurance? - Answer face amount (death benefit)
When would a 20-pay whole life policy endow? - Answer a limited pay whole life policy would
endows for the face amount at age 100. the premium is completely paid off in 20 years.
In what type of life insurance policies can the policyowner skip premium payments without the
policy lapsing? - Answer Universal Life
Who is entitled to cash values in a life insurance policy? - Answer Policyowner
What type of whole life insurance policy generates immediate cash value? - Answer Single
premium whole life
What type of life insurance policy provides permanent protection? - Answer whole life
If an insured terminates membership in group life insurance, to what type of insurance can be
insured convert the coverage? - Answer Whole life
What are the characteristics of the group that underwriters will consider before issuing a group
life policy? - Answer Group's purpose, size, financial strength and turnover
In a joint life policy, when is the death benefit paid? - Answer Upon the first death
What elements of an adjustable life policy can be changed by the policyowners? - Answer The
amount and payment period of the premium, the face amount, and the period for protection
Between adjustable life and universal life policies, which one provides more flexibility to the
policyowner? - Answer Universal Life
Policies Study Guide Questions and
Actual Answers 2026-2027 Updated.
What type of whole life insurance policies only requires a payment of premium at its inception,
and in addition to providing insurance protection for the life of the insured, endows at the
insured's age 100? - Answer Single premium whole life
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? - Answer Limited pay whole life
An individual has just borrowed $10,000 on a five year note from his bank. The note is due in
installments. What type of life insurance policy would be best suited for this situation? - Answer
Decreasing term
What type of life insurance policy is life paid-up at age 65? - Answer Limited-pay whole life (LP
Whole Life)
How is the premium determined in a joint life insurance policy? - Answer The premium is
based on the average age of the insureds.
The death component of a universal life policy is expressed as what type of coverage? - Answer
Annually renewable term
What is the major difference between the most common types of whole life policies: straight
life, limited payment and single premium? - Answer Premium payment mode
In term policies, what happens to the premium throughout the term of the policy? - Answer
The premium remains level
STAYS THE SAME
What is the purpose of establishing the target premium for a universal life policy? - Answer To
prevent the policy from lapsing
What type of insurance is best suited to cover a mortgage? - Answer Decreasing term
In variable universal life insurance, to what policy component does the term variable refer? -
Answer Cash value and death benefit
, Whole life insurance policies mature when the insured reaches the age of 100. If the owner of a
whole life policy 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. - Answer The full death benefit
The policyowner of a whole life insurance policy is also the insured. What age must be insured
attain in order to receive the policy's face amount? - Answer Age 100
What does level refer to in level term insurance? - Answer face amount (death benefit)
When would a 20-pay whole life policy endow? - Answer a limited pay whole life policy would
endows for the face amount at age 100. the premium is completely paid off in 20 years.
In what type of life insurance policies can the policyowner skip premium payments without the
policy lapsing? - Answer Universal Life
Who is entitled to cash values in a life insurance policy? - Answer Policyowner
What type of whole life insurance policy generates immediate cash value? - Answer Single
premium whole life
What type of life insurance policy provides permanent protection? - Answer whole life
If an insured terminates membership in group life insurance, to what type of insurance can be
insured convert the coverage? - Answer Whole life
What are the characteristics of the group that underwriters will consider before issuing a group
life policy? - Answer Group's purpose, size, financial strength and turnover
In a joint life policy, when is the death benefit paid? - Answer Upon the first death
What elements of an adjustable life policy can be changed by the policyowners? - Answer The
amount and payment period of the premium, the face amount, and the period for protection
Between adjustable life and universal life policies, which one provides more flexibility to the
policyowner? - Answer Universal Life
