NC Life Insurance State Exam Study Guideline with Complete Solutions

NC Life Insurance State Exam Study Guideline with Complete Solutions Term Insurance ANS-Used for Temporary Situations. Net cost highest in the long run. Premiums goes up every year based on current (attained)age. Term Insurance ANS-Expire's at a certain age/Time in the future. May be renewable up to a certain age or date with out a phyical Exam. Level Term Insurance ANS-Term insurance can be Renewed annually. Has a level Face Amount at renewal, Premiums goes up. Can be purchased for a Year or as often as 5, 10, 15, to 20 years inclements with average premium. Premiums and Face Amounts are "Level" for a period of "Time". Decreasing Term Insurance ANS-It is NOT Annual Renewable term. Face Amount goes down, while Premiums remain the same. Decreasing Term insurance is often used as a mortage redemption. Can be converted to Whole Life, regardless of health. Premiums stays the same. Costs increases as Face Amount decreases, by expiration the Face Amount is Zero. Increasing Term Insurance ANS-Term is added as a rider to Whole Life policies, at an extra cost. Face Amount goes up. It Allows beneficiary to recieve Face Amount plus Premiums or Cash Value. Renewability ANS-Most Term Is renewable up to a certain age regardless of health. That can be renewed without proof of the insureds insurability, up to a certain specified maximum age. Convertibilty ANS-Most are convertible to Whole Life policies regardless of health. Conversions are based on current "attained" age. NOT original age. Conversion may only be to a move expensive policy, such as Whole Life. Term insurance ANS-You can not convert "Term to Term" You can convert "Term to Whole Life" You can never convert to more coverage than you have. " If you want more insurance, you will have to pass a physical exam and pay premiums upon your current "attained" age. What are the 9 types of Whole Life Insurance Policies? ANS-"Ordinary (Straight) Life" " Limited Pay" " Single-Premiums Whole Life" "Adjustable Whole Life" Universal Whole Life" Variable Whole Life" "Variable/Universal Whole Life" "Interest Sensitive Whole Life" " Equity-indexed Life "Ordinary (Straight) Life" (Fixed Premiums) ANS-Permanent protection (matures at age 100) Guaranteed Tax deferred Interest rate on Cash Value. Cas