Primerica( life insurance policies Exam)
What happen to the cash value when a whole life insurance policy matures? - correct
answer-Cash value is paid to the policy owner,
what is the major difference between the most common types of whole life policies:
straight life, limited payment and single premium? - correct answer-premium payment
mode.
what is the purpose of establishing the target premium for a universal life policy. -
correct answer-to prevent the policy from lapsing
a whole life policy that requires that the policy owner pay only premiums for a specific
number of years is known as what kind of policy? - correct answer-limited- pay whole
life
In an annually renewable term policy, what is the annual premium base upon? - correct
answer-the insured's attainable age.
What policy component must decrease in decreasing term insurance? - correct answer-
face amount
what element of an adjustable policy can be changed by the policy owner? - correct
answer-the amount and payment period of the premium, the face amount, and the
period of protection.
Under Option B in a universal life policy, what happens to the death benefit? - correct
answer-the death benefit increases each year by the amount the amount of the cash
value increases
universal life policies have two types of interest rates, what are they? - correct answer-
guaranteed and current
the death protection component of universal life policy is expressed as what coverage?
- correct answer-annually renewable term.
what are the living benefits of whole life insurance? - correct answer-loan values
what type of life insurance policy offers pure death protection? - correct answer-term
The policy owner of a whole life insurance policy is also the insured. What age must the
insured attain in order to receive the policy's face amount? - correct answer-age 100
What happen to the cash value when a whole life insurance policy matures? - correct
answer-Cash value is paid to the policy owner,
what is the major difference between the most common types of whole life policies:
straight life, limited payment and single premium? - correct answer-premium payment
mode.
what is the purpose of establishing the target premium for a universal life policy. -
correct answer-to prevent the policy from lapsing
a whole life policy that requires that the policy owner pay only premiums for a specific
number of years is known as what kind of policy? - correct answer-limited- pay whole
life
In an annually renewable term policy, what is the annual premium base upon? - correct
answer-the insured's attainable age.
What policy component must decrease in decreasing term insurance? - correct answer-
face amount
what element of an adjustable policy can be changed by the policy owner? - correct
answer-the amount and payment period of the premium, the face amount, and the
period of protection.
Under Option B in a universal life policy, what happens to the death benefit? - correct
answer-the death benefit increases each year by the amount the amount of the cash
value increases
universal life policies have two types of interest rates, what are they? - correct answer-
guaranteed and current
the death protection component of universal life policy is expressed as what coverage?
- correct answer-annually renewable term.
what are the living benefits of whole life insurance? - correct answer-loan values
what type of life insurance policy offers pure death protection? - correct answer-term
The policy owner of a whole life insurance policy is also the insured. What age must the
insured attain in order to receive the policy's face amount? - correct answer-age 100
