Idaho Life Insurance Exam Questions & Answers (GRADED A+)

Which of the following is True regarding the insurance amount in a credit life policy - ANSWER-The creditor can only insure the debtor for the amount owed. Joint life policies pays on the 1st or the second death? - ANSWER-First death only. Variable universal life policy includes the following. - ANSWER-The cash values are not guaranteed. The policy owner can participate in some of the investment decisions, The minim death benefit is guaranteed. In variable universal life is the death benefit fixed? - ANSWER-Not fixed Which component in the increases in the increase term insurnance? - ANSWER-Death Benefit increase over duration of the policy term. Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured? - ANSWER-Option B. It includes the annual increase in value so that the death benefit gradually increases each year by the amount the cash value increases. Decreasing term policy - ANSWER-Premiums remain level with decreasing term policy only the face amount decreases With and adjustable life policy one must provide what? - ANSWER-Insurability Example of limited pay whole life. - ANSWER-Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65.