Life Insurance and Annuity Exam Questions With Answers Explained.
At what age are all persons statistically considered 'dead' for life insurance
purposes? - accurate answers-Age 92
What can a life insurance policy with cash value accumulation be used for
when a policyowner borrows money from a bank? - accurate answers-It can
normally be used as collateral for the loan.
What is NOT true about an estate builder policy when presented to the
insured at age 21? - accurate answers-The face value of Donald's policy has
increased by five times.
How are mortality figures typically developed? - accurate answers-By
studying the deaths of millions of persons over long periods of time.
What is the term for the money paid by the insured to the insurance company
for protection? - accurate answers-Consideration
What is the expected face amount of an estate builder policy for a child at age
21 if it started at $5,000? - accurate answers-$50,000
What is the annual policy load generated by not paying excess interest on the
first $1,000 in cash value in a universal life policy with a guaranteed interest
rate of 5%? - accurate answers-$40
What are the two adjustments usually made to the cash value account in a
universal life policy? - accurate answers-Cost of insurance protection is
charged and current interest is credited.
What are loan values and retirement income referred to in life insurance? -
accurate answers-Living benefits of life insurance.
Which policy is expected to have the lowest premium? - accurate answers-30-
pay life.
What principle states that a contract must be between individuals considered
legally able to enter into an agreement? - accurate answers-Competent
parties.
, What happens to the cash value of an estate builder policy by the time the
insured reaches age 21? - accurate answers-It should have accumulated cash
value.
What is the face amount of a juvenile policy typically at age 21 if it started at
$5,000? - accurate answers-It would normally be $50,000.
What is the significance of the current interest rate in a universal life policy? -
accurate answers-It affects the cash value and policy load.
What does a mother purchase for her child that provides protection against
premature death? - accurate answers-An estate builder (jumping juvenile)
policy.
What is the correct term for the benefits received from life insurance policies?
- accurate answers-Benefits.
What is the primary purpose of a life insurance policy? - accurate answers-To
provide financial protection against loss of life.
What is the role of guaranteed interest in a universal life policy? - accurate
answers-It is credited to the cash value account.
What does the term 'consideration' refer to in life insurance contracts? -
accurate answers-The payment made by the insured for insurance protection.
What is the purpose of the cash value in a life insurance policy? - accurate
answers-It can be borrowed against or used for retirement income.
What is the typical duration of a 15-pay endowment policy? - accurate
answers-15 years.
What does the term 'legal purpose' refer to in contract law? - accurate
answers-The requirement that a contract must have a lawful objective.
What normally comprises a deceased's final expense? - accurate answers-
Medical and funeral expenses plus debts or current bills.
At what age are all persons statistically considered 'dead' for life insurance
purposes? - accurate answers-Age 92
What can a life insurance policy with cash value accumulation be used for
when a policyowner borrows money from a bank? - accurate answers-It can
normally be used as collateral for the loan.
What is NOT true about an estate builder policy when presented to the
insured at age 21? - accurate answers-The face value of Donald's policy has
increased by five times.
How are mortality figures typically developed? - accurate answers-By
studying the deaths of millions of persons over long periods of time.
What is the term for the money paid by the insured to the insurance company
for protection? - accurate answers-Consideration
What is the expected face amount of an estate builder policy for a child at age
21 if it started at $5,000? - accurate answers-$50,000
What is the annual policy load generated by not paying excess interest on the
first $1,000 in cash value in a universal life policy with a guaranteed interest
rate of 5%? - accurate answers-$40
What are the two adjustments usually made to the cash value account in a
universal life policy? - accurate answers-Cost of insurance protection is
charged and current interest is credited.
What are loan values and retirement income referred to in life insurance? -
accurate answers-Living benefits of life insurance.
Which policy is expected to have the lowest premium? - accurate answers-30-
pay life.
What principle states that a contract must be between individuals considered
legally able to enter into an agreement? - accurate answers-Competent
parties.
, What happens to the cash value of an estate builder policy by the time the
insured reaches age 21? - accurate answers-It should have accumulated cash
value.
What is the face amount of a juvenile policy typically at age 21 if it started at
$5,000? - accurate answers-It would normally be $50,000.
What is the significance of the current interest rate in a universal life policy? -
accurate answers-It affects the cash value and policy load.
What does a mother purchase for her child that provides protection against
premature death? - accurate answers-An estate builder (jumping juvenile)
policy.
What is the correct term for the benefits received from life insurance policies?
- accurate answers-Benefits.
What is the primary purpose of a life insurance policy? - accurate answers-To
provide financial protection against loss of life.
What is the role of guaranteed interest in a universal life policy? - accurate
answers-It is credited to the cash value account.
What does the term 'consideration' refer to in life insurance contracts? -
accurate answers-The payment made by the insured for insurance protection.
What is the purpose of the cash value in a life insurance policy? - accurate
answers-It can be borrowed against or used for retirement income.
What is the typical duration of a 15-pay endowment policy? - accurate
answers-15 years.
What does the term 'legal purpose' refer to in contract law? - accurate
answers-The requirement that a contract must have a lawful objective.
What normally comprises a deceased's final expense? - accurate answers-
Medical and funeral expenses plus debts or current bills.
