Life Insurance Chp 3 Questions and Answers Graded A+
K pays on a $20,000 20-Year Endowment policy for 10
years and dies from an automobile accident. How much $20,000 death benefit
will the insurance company pay the beneficiary?
N is a 40-year old applicant who would like to retire at
*30 Pay Life
age 70. He is looking to buy a life insurance policy with
(Limited pay whole life policies have level premiums that
level premiums, permanent protection, and be paid-up at
are limited to a certain period.)
retirement. Which of these should N purchase?
*20-Pay Life.
J is 35-years old and looking to purchase a whole life
insurance policy. Which of the following types of policies
(the shorter the pay period, the faster the cash value
will provide the most rapid growth of cash value?
growth.)
How does a typical Variable Life Policy investment account
Through mutual funds, stocks, bonds
grow?
S is covered by a whole life policy. Which insurance prod-
Child term rider
uct can cover his children?
Which of these types of life insurance allows the policy-
owner to have level premiums and to also choose from a Variable Life
selection of investment options?
Who benefits in Investor-Originated Life Insurance (IOLI)
Policyowner
when the insured dies?
*20-pay life
What type of policy would otter a 40-year old the quickest
accumulation of cash value? (the shorter the pay period, the faster the cash value
growth.)
K is looking to purchase Renewable Term insurance.
Which of these types of Term insurance may be renew- level
able?
Which of the following features of a group Term Life policy *Conversion privilege
enables an individual to leave the group and continue his
1/3
K pays on a $20,000 20-Year Endowment policy for 10
years and dies from an automobile accident. How much $20,000 death benefit
will the insurance company pay the beneficiary?
N is a 40-year old applicant who would like to retire at
*30 Pay Life
age 70. He is looking to buy a life insurance policy with
(Limited pay whole life policies have level premiums that
level premiums, permanent protection, and be paid-up at
are limited to a certain period.)
retirement. Which of these should N purchase?
*20-Pay Life.
J is 35-years old and looking to purchase a whole life
insurance policy. Which of the following types of policies
(the shorter the pay period, the faster the cash value
will provide the most rapid growth of cash value?
growth.)
How does a typical Variable Life Policy investment account
Through mutual funds, stocks, bonds
grow?
S is covered by a whole life policy. Which insurance prod-
Child term rider
uct can cover his children?
Which of these types of life insurance allows the policy-
owner to have level premiums and to also choose from a Variable Life
selection of investment options?
Who benefits in Investor-Originated Life Insurance (IOLI)
Policyowner
when the insured dies?
*20-pay life
What type of policy would otter a 40-year old the quickest
accumulation of cash value? (the shorter the pay period, the faster the cash value
growth.)
K is looking to purchase Renewable Term insurance.
Which of these types of Term insurance may be renew- level
able?
Which of the following features of a group Term Life policy *Conversion privilege
enables an individual to leave the group and continue his
1/3
