LOMA 281 Module 2 Exam Questions
and Answers 100% Solved | Rated A+
Which type of whole life insurance policy will best be able to give Arabella
lifetime protection without straining her retirement income?
Single-premium whole life policy
Limited-payment whole life policy
Continuous-premium whole life policy - ✔✔B
Financial needs life insurance can meet - ✔✔- paying household expenses
- covering outstanding debts
- Paying outstanding medical, hospital, and funeral expenses,
- providing financial support for the family
- funding a child's education
Term Life Insurance - ✔✔Life insurance that provides a death benefit only if
the insured dies during the period specified in the policy.
level term life insurance - ✔✔Term life insurance that provides a policy
benefit that remains the same over the term of the policy.
1
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,Decreasing Term Life Insurance - ✔✔Term life insurance that provides a
policy benefit that decreases in amount over the term of coverage
Mortgage Insurance - ✔✔A plan of decreasing term insurance designed to
provide a benefit amount that corresponds to the decreasing amount owed
on a mortgage loan.
When Michael bought a house, he obtained a mortgage loan from the
Archway Bank. He also bought a mortgage insurance policy from Able Life.
Is Archway Bank a party to Michael's mortgage insurance contract with
Able Life?
a. yes
b. no - ✔✔B.
Who can Michael name as the beneficiary of his mortgage insurance
policy?
a. His Wife Only
b. Archway Bank Only
c. His Wife, Archway Bank, or Someone Else - ✔✔C.
2
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,If Michael names his wife as the policy beneficiary, does she have to use
the policy proceeds to repay the mortgage loan?
a. yes
b. no - ✔✔B.
Credit Life Insurance - ✔✔A type of term life insurance designed to pay the
balance due on a loan if the borrower dies before the loan is repaid.
Family Income Coverage - ✔✔A plan of decreasing term life insurance that
provides a stated monthly income benefit amount if the insured dies during
the term of coverage.
Increasing Term Life Insurance - ✔✔Term life insurance that provides a
death benefit that starts at one amount and increases by some specified
amount or percentage at stated intervals over the policy term.
Decide whether the statements below describe increasing term insurance,
level term insurance, or decreasing term insurance.
A 5-year term life insurance policy that offers a death benefit of $50,000 for
the first year of the policy term, $40,000 for the second year, and so on.
The benefit for the fifth year is $10,000.
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, a. Increasing Term Insurance
b. Level Term Insurance
c. Decreasing Term Insurance - ✔✔C.
A 5-year term life insurance policy that provides a $100,000 death benefit if
the insured dies at any time during the 5-year policy term.
a. increasing term insurance
b. level term insurance
c. decreasing term insurance - ✔✔B.
A 5-year term life insurance policy that pays a $100,000 benefit during the
policy's first year, a $105,000 benefit during the second year, and so on.
The benefit during the fifth year is $120,000.
Increasing term insurance
Level term insurance
Decreasing term insurance
a. increasing term insurance
b. level term insurance
c. decreasing term insurance - ✔✔A.
4
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
and Answers 100% Solved | Rated A+
Which type of whole life insurance policy will best be able to give Arabella
lifetime protection without straining her retirement income?
Single-premium whole life policy
Limited-payment whole life policy
Continuous-premium whole life policy - ✔✔B
Financial needs life insurance can meet - ✔✔- paying household expenses
- covering outstanding debts
- Paying outstanding medical, hospital, and funeral expenses,
- providing financial support for the family
- funding a child's education
Term Life Insurance - ✔✔Life insurance that provides a death benefit only if
the insured dies during the period specified in the policy.
level term life insurance - ✔✔Term life insurance that provides a policy
benefit that remains the same over the term of the policy.
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,Decreasing Term Life Insurance - ✔✔Term life insurance that provides a
policy benefit that decreases in amount over the term of coverage
Mortgage Insurance - ✔✔A plan of decreasing term insurance designed to
provide a benefit amount that corresponds to the decreasing amount owed
on a mortgage loan.
When Michael bought a house, he obtained a mortgage loan from the
Archway Bank. He also bought a mortgage insurance policy from Able Life.
Is Archway Bank a party to Michael's mortgage insurance contract with
Able Life?
a. yes
b. no - ✔✔B.
Who can Michael name as the beneficiary of his mortgage insurance
policy?
a. His Wife Only
b. Archway Bank Only
c. His Wife, Archway Bank, or Someone Else - ✔✔C.
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,If Michael names his wife as the policy beneficiary, does she have to use
the policy proceeds to repay the mortgage loan?
a. yes
b. no - ✔✔B.
Credit Life Insurance - ✔✔A type of term life insurance designed to pay the
balance due on a loan if the borrower dies before the loan is repaid.
Family Income Coverage - ✔✔A plan of decreasing term life insurance that
provides a stated monthly income benefit amount if the insured dies during
the term of coverage.
Increasing Term Life Insurance - ✔✔Term life insurance that provides a
death benefit that starts at one amount and increases by some specified
amount or percentage at stated intervals over the policy term.
Decide whether the statements below describe increasing term insurance,
level term insurance, or decreasing term insurance.
A 5-year term life insurance policy that offers a death benefit of $50,000 for
the first year of the policy term, $40,000 for the second year, and so on.
The benefit for the fifth year is $10,000.
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, a. Increasing Term Insurance
b. Level Term Insurance
c. Decreasing Term Insurance - ✔✔C.
A 5-year term life insurance policy that provides a $100,000 death benefit if
the insured dies at any time during the 5-year policy term.
a. increasing term insurance
b. level term insurance
c. decreasing term insurance - ✔✔B.
A 5-year term life insurance policy that pays a $100,000 benefit during the
policy's first year, a $105,000 benefit during the second year, and so on.
The benefit during the fifth year is $120,000.
Increasing term insurance
Level term insurance
Decreasing term insurance
a. increasing term insurance
b. level term insurance
c. decreasing term insurance - ✔✔A.
4
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
