CA Life and Health Exam Questions with highest ratings

What is another name for Interest-sensitive whole life insurance? and what does this type of insurance do? - ANSWER-Current assumption life Cash value of policy has an interest rate comparable with money market, so it may change. This benefit may allow for either greater cash value, or a shorter premium payment period What are the 3 basic types of term life insurance? and what do they do? - ANSWER-1. Level - Death benefit stays the same 2. increasing - Death benefit increases 3. decreases - death benefit decreases what are the 3 basic types of whole life insurance? - ANSWER-1. Straight life (continuous premium) - level premiums paid until death, or reached age 100 2. Limited Payment - premiums are paid up by a certain age giving a shorter payment period 3. Single Premium - policy is completely paid up after one lump-sum premium The least expensive first year premium is found in which of the following policies? a. level term b. annually renewable term c. increasing term d. decreasing term - ANSWER-B. annually renewable term (ART) ART is the purest form of term insurance. Death benefit is level, but premium increases each year with insured's age. A return of premium term life policy is written as which type of term coverage? - ANSWER-increasing