LIFE ExamFX (guarantee) Questions With Complete Solutions

a life insurance policy that provides coverage to every family member in a single policy, with permanent insurance on the breadwinner and convertible term on other family members is called correct answer: family policy a whole life policy is surrendered for a reduced-paid up policy. the cash value in the new policy will correct answer: continue to increase which of the following policies van be described as a flexible premium adjustable life policy? correct answer: Universal Life which of the following would be TRUE of both the fixed period and the fixed-amount settlement options? correct answer: both guarantee that the principal and interest will be fully paid out which of the following types of insurance products would. be appropriate for an individual with a low income and high insurance needs? correct answer: term insurance all of the factors being equal, which of the following premium modes would result in the lowest overall premium? correct answer: Annual all of the following are true of credit life EXCEPT correct answer: The insured names the beneficiary an insurance agent who represents multiple companies on a nonexclusive basis and earns commissions on personal sales is working in what kind of marketing system? correct answer: Independent agency system Partners in a business want to make sure that if one of them were to pass away, their surviving family will receive a fair value for their portion in the business. what life insurance arrangement would be most suited for transitioning the business? correct answer: Buy-Sell Agreement How long is the grace period for an individual life insurance policy? correct answer: 1 month (30-31 days) All of the following are true of annually renewable term insurance EXCEPT correct answer: proof of insurability must be provided at each renewal what is the cost of coverage based on for group life insurance? correct answer: The average age and the ratio of meant to women which of the following losses would likely be covered under the Accidental Death Rider? correct answer: Death caused by a