LIFE INSURANCE EXAM 3 QUESTIONS WITH COMPLETE
SOLUTION
Decreasing term
When the insured purchased a new home he wanted to purchase a life
insurance policy that would protect his family against losing the home
should he die before the mortagage was paid. The most inexpensive type
of policy that would accomplish this need would be
Renews each year with an increased premium
An annually renewable term policy
Life paid-up at age 65
Which of the following is an example of a limited-pay life policy?
Single premium whole life
An insurance policy that only requires a payment of premium at its
inception and provides insurance protection for the life of the insured and
endows at the insureds age 100, is called
The death benefit can be increased by providing evidence of
insurability
An individual owns adjustable life policy. Sometime in the future he wants
to increase the death benefit. Which of the following statements is correct
regarding the change?
Annually renewable term
What type of life insurance is most commonly used for group plans?
Remains constant over time
With a traditional whole life policy, the death benefit
Universal life, options B
A policy that allows the beneficiary to collect both the death benefit and
cash value upon the death of the insured is
Variable
An insured receives a monthly summary regarding his life insurance policy.
He notices that the cash value of the policy is significantly lower this month
than it was last month. What type of policy does he have?
Master contract
In a single employer group plan, what is the name of a document that is
issued to the employer?
If the insured dies after the end of the term, there is no death benefit
to the beneficiary
Which of the following is true regarding term insurance?
SOLUTION
Decreasing term
When the insured purchased a new home he wanted to purchase a life
insurance policy that would protect his family against losing the home
should he die before the mortagage was paid. The most inexpensive type
of policy that would accomplish this need would be
Renews each year with an increased premium
An annually renewable term policy
Life paid-up at age 65
Which of the following is an example of a limited-pay life policy?
Single premium whole life
An insurance policy that only requires a payment of premium at its
inception and provides insurance protection for the life of the insured and
endows at the insureds age 100, is called
The death benefit can be increased by providing evidence of
insurability
An individual owns adjustable life policy. Sometime in the future he wants
to increase the death benefit. Which of the following statements is correct
regarding the change?
Annually renewable term
What type of life insurance is most commonly used for group plans?
Remains constant over time
With a traditional whole life policy, the death benefit
Universal life, options B
A policy that allows the beneficiary to collect both the death benefit and
cash value upon the death of the insured is
Variable
An insured receives a monthly summary regarding his life insurance policy.
He notices that the cash value of the policy is significantly lower this month
than it was last month. What type of policy does he have?
Master contract
In a single employer group plan, what is the name of a document that is
issued to the employer?
If the insured dies after the end of the term, there is no death benefit
to the beneficiary
Which of the following is true regarding term insurance?
