INSR 310 EVALUATION EXAM ACTUAL QUESTIONS AND
SOLUTIONS GRADED A+
✔✔Oldest type and most common type of life insurance sold - ✔✔Ordinary Life
✔✔Temporary coverage for a certain period of time (protection only) that is renewable
with a conversion option as well (retroactive to original issue date) - ✔✔"Term" Ordinary
Life
✔✔Ex: Buying insurance and dying within the period of time, so having coverage -
✔✔"Term" Ordinary Life
✔✔What happens to the face value throughout the period of time, most common type
sold; ex: paying the same $100 throughout the whole period of time - ✔✔Level Term
Insurance
✔✔Diminishes throughout the period of time; ex: buying a policy that pays off the loan
of the mortgage of your house as you live - ✔✔Decreasing Term Insurance
✔✔More insurance the longer the policy is enforced, not necessarily the most popular
product; ex: you are more likely to die the older and older you get, so basically paying
more every year for the risk of death - ✔✔Increasing Term Insurance
✔✔Insurance for your whole life - ✔✔"Whole life" Ordinary Life
✔✔Gives you both protections and savings (Protection + Savings [CV]) - ✔✔Whole Life
✔✔As long as you're ordinary and straight, you will pay for it continuously throughout
your whole life while its enforced - ✔✔"Ordinary"/"Straight"/"Continuous Premium"
Whole life
✔✔Paying off insurance while you are working, therefore, not having to pay it while you
are retired - ✔✔"Limited Pay" Whole life
✔✔Whole life insurance is a type of what contract? - ✔✔Endowment contract
✔✔You will be provided savings and protections, however, it focuses more on the
savings component rather than the protections component which makes it more
dangerous (Savings + Protection) - ✔✔Endowment Contracts
✔✔You can make one payment and never have to pay again
and you can monthly/quarterly/annually pay it off - ✔✔Endowment Contract
, ✔✔Gives the insurance, policy owner more flexibility (Policyholder Flexibility) -
✔✔Package Contracts
✔✔Insurance for burial expenses - ✔✔Industrial Life
✔✔Insurance to repay a lender in the event of your death; paying off your credit when
you die - ✔✔Credit Life
✔✔More of a distribution system; depends on the individual and the group; for example,
employee benefits group - ✔✔Group Life
✔✔Periodic payments with contracted start + duration; outliving premature death -
✔✔Annuity
✔✔Starting with a full cup, paying the annuity out and the premiums are what we put in
the cup; DRAINING the cup out, life insurance in reverse - ✔✔"Upside-down" Insurance
✔✔People who live longer are the people who buy annuities - ✔✔"Annuity Principle"
(adverse selection)
✔✔A type of annuity where you receive as long as you live and once you die you no
longer have to pay, this is the plain old vanilla annuity - ✔✔Straight/Ordinary Life
✔✔A type of annuity where you are guaranteed minimum number of payments; annuity
pays for 10 years for certain; costs more - ✔✔Period Certain
✔✔A type of annuity where you are paying you as long as you live and whenever you
die, whatever money is left in the cup will go to whoever you choose - ✔✔"Installment
Refund" or "Cash Refund"
✔✔It's an annuity for some limited period of time - ✔✔Temporary Life
✔✔How the money is going to be paid out; important choice of how the payout is going
to happen - ✔✔Settlement (Payout) Option
✔✔Type of settlement option that is known as the most common way people think
about it; For example: Kid loses his parents to a death at 16, parents leave him
1,000,000. He wastes all the money instead of using it for college - ✔✔Lump sum
✔✔Giving the 1 million dollars over time - ✔✔Fixed Period Annuity
✔✔Giving the payout and dollar amounts, he needs 300,000 a month - ✔✔Fixed
Amount Annuity
SOLUTIONS GRADED A+
✔✔Oldest type and most common type of life insurance sold - ✔✔Ordinary Life
✔✔Temporary coverage for a certain period of time (protection only) that is renewable
with a conversion option as well (retroactive to original issue date) - ✔✔"Term" Ordinary
Life
✔✔Ex: Buying insurance and dying within the period of time, so having coverage -
✔✔"Term" Ordinary Life
✔✔What happens to the face value throughout the period of time, most common type
sold; ex: paying the same $100 throughout the whole period of time - ✔✔Level Term
Insurance
✔✔Diminishes throughout the period of time; ex: buying a policy that pays off the loan
of the mortgage of your house as you live - ✔✔Decreasing Term Insurance
✔✔More insurance the longer the policy is enforced, not necessarily the most popular
product; ex: you are more likely to die the older and older you get, so basically paying
more every year for the risk of death - ✔✔Increasing Term Insurance
✔✔Insurance for your whole life - ✔✔"Whole life" Ordinary Life
✔✔Gives you both protections and savings (Protection + Savings [CV]) - ✔✔Whole Life
✔✔As long as you're ordinary and straight, you will pay for it continuously throughout
your whole life while its enforced - ✔✔"Ordinary"/"Straight"/"Continuous Premium"
Whole life
✔✔Paying off insurance while you are working, therefore, not having to pay it while you
are retired - ✔✔"Limited Pay" Whole life
✔✔Whole life insurance is a type of what contract? - ✔✔Endowment contract
✔✔You will be provided savings and protections, however, it focuses more on the
savings component rather than the protections component which makes it more
dangerous (Savings + Protection) - ✔✔Endowment Contracts
✔✔You can make one payment and never have to pay again
and you can monthly/quarterly/annually pay it off - ✔✔Endowment Contract
, ✔✔Gives the insurance, policy owner more flexibility (Policyholder Flexibility) -
✔✔Package Contracts
✔✔Insurance for burial expenses - ✔✔Industrial Life
✔✔Insurance to repay a lender in the event of your death; paying off your credit when
you die - ✔✔Credit Life
✔✔More of a distribution system; depends on the individual and the group; for example,
employee benefits group - ✔✔Group Life
✔✔Periodic payments with contracted start + duration; outliving premature death -
✔✔Annuity
✔✔Starting with a full cup, paying the annuity out and the premiums are what we put in
the cup; DRAINING the cup out, life insurance in reverse - ✔✔"Upside-down" Insurance
✔✔People who live longer are the people who buy annuities - ✔✔"Annuity Principle"
(adverse selection)
✔✔A type of annuity where you receive as long as you live and once you die you no
longer have to pay, this is the plain old vanilla annuity - ✔✔Straight/Ordinary Life
✔✔A type of annuity where you are guaranteed minimum number of payments; annuity
pays for 10 years for certain; costs more - ✔✔Period Certain
✔✔A type of annuity where you are paying you as long as you live and whenever you
die, whatever money is left in the cup will go to whoever you choose - ✔✔"Installment
Refund" or "Cash Refund"
✔✔It's an annuity for some limited period of time - ✔✔Temporary Life
✔✔How the money is going to be paid out; important choice of how the payout is going
to happen - ✔✔Settlement (Payout) Option
✔✔Type of settlement option that is known as the most common way people think
about it; For example: Kid loses his parents to a death at 16, parents leave him
1,000,000. He wastes all the money instead of using it for college - ✔✔Lump sum
✔✔Giving the 1 million dollars over time - ✔✔Fixed Period Annuity
✔✔Giving the payout and dollar amounts, he needs 300,000 a month - ✔✔Fixed
Amount Annuity
