Missouri Life Insurance Exam Questions
with Grade A+ Answers
Term life - ANSWER-Insurance provides pure death protection since it only pays a
death benefit if the insured dies during the policy term. Term life insurance does not
accrue cash value
Whole life - ANSWER-Insurance provides death benefits for the entire life of the
insured. It also provides living benefits in the form of cash values. It matures at age 100
Group life - ANSWER-Coverage is provided to the members of the group under the
master contract. The group is written as a whole, not on each individual member. One
of the benefits of group life coverage is there usually is no evidence of insurability
required.
Level term - ANSWER-Also called level premium level term, has a level face amount
and level premiums. Premiums tend to be higher than annual renewable term because
they are level throughout the policy period. However, the premiums will increase at each
renewal.
Decreasing term - ANSWER-Term life insurance that provides a decreasing face
amount overtime with six premiums. These policies are usually use for mortgage
protection
Increasing term - ANSWER-Term life insurance that provides an increasing base of
Mount overtime based on specific amounts or a percentage of the original face amount.
Convertible term - ANSWER-A term life policy that allows policy owners to convert their
term insurance into permanat policy without showing proof of insurability.
Renewable term - ANSWER-A feature of term insurance allows the policy owner to
renew that coverage after the designated term expires without having to prove
insurability
, Annual renewable term - ANSWER-Term coverage that provides a level face amount
that renews annually. This type of coverage is guaranteed renewable annually without
proof of insurability
Whole life insurance - ANSWER-Provides both living and death benefits. Provides
permanent life insurance protection for the insureds entire life. It also provides living
benefits such as c
Advantages of whole life insurance - ANSWER-It covers the entire life of the insured.
Provides living benefits or cash value policy loans and Fixed premiums
Drawbacks of whole life insurance - ANSWER-Protection is more expensive because of
living benefits and premium paint. May extend beyond the income you're earning years
There are several types of whole life insurance such as - ANSWER-Straight whole life.
Limited pay whole life. Single premium whole life. Modified whole life. Graded whole life
Straight life - ANSWER-This is basic whole life insurance with a level face amount and
fix premiums payable over the insured entire life. Premium payments made until death
of insured or age of 100
Limited pay life - ANSWER-This is whole life insurance for the insured is covered for his
entire life but premiums are paid for a limited time. As the premium payment. Shortens,
cash values increase faster.
Single premium life - ANSWER-Allows the insured to pay the entire premium in one
lump sum and have coverage for the insureds entire life
Modified whole life - ANSWER-Low premiums in the early years and jumps to a higher
premium in the later years and remains fixed thereafter. Premiums increased just once.
Grated whole life - ANSWER-Starts out with a low premium then has a slight increase
yearly for a set period of time. Premiums then level off for the remainder of the policy.
with Grade A+ Answers
Term life - ANSWER-Insurance provides pure death protection since it only pays a
death benefit if the insured dies during the policy term. Term life insurance does not
accrue cash value
Whole life - ANSWER-Insurance provides death benefits for the entire life of the
insured. It also provides living benefits in the form of cash values. It matures at age 100
Group life - ANSWER-Coverage is provided to the members of the group under the
master contract. The group is written as a whole, not on each individual member. One
of the benefits of group life coverage is there usually is no evidence of insurability
required.
Level term - ANSWER-Also called level premium level term, has a level face amount
and level premiums. Premiums tend to be higher than annual renewable term because
they are level throughout the policy period. However, the premiums will increase at each
renewal.
Decreasing term - ANSWER-Term life insurance that provides a decreasing face
amount overtime with six premiums. These policies are usually use for mortgage
protection
Increasing term - ANSWER-Term life insurance that provides an increasing base of
Mount overtime based on specific amounts or a percentage of the original face amount.
Convertible term - ANSWER-A term life policy that allows policy owners to convert their
term insurance into permanat policy without showing proof of insurability.
Renewable term - ANSWER-A feature of term insurance allows the policy owner to
renew that coverage after the designated term expires without having to prove
insurability
, Annual renewable term - ANSWER-Term coverage that provides a level face amount
that renews annually. This type of coverage is guaranteed renewable annually without
proof of insurability
Whole life insurance - ANSWER-Provides both living and death benefits. Provides
permanent life insurance protection for the insureds entire life. It also provides living
benefits such as c
Advantages of whole life insurance - ANSWER-It covers the entire life of the insured.
Provides living benefits or cash value policy loans and Fixed premiums
Drawbacks of whole life insurance - ANSWER-Protection is more expensive because of
living benefits and premium paint. May extend beyond the income you're earning years
There are several types of whole life insurance such as - ANSWER-Straight whole life.
Limited pay whole life. Single premium whole life. Modified whole life. Graded whole life
Straight life - ANSWER-This is basic whole life insurance with a level face amount and
fix premiums payable over the insured entire life. Premium payments made until death
of insured or age of 100
Limited pay life - ANSWER-This is whole life insurance for the insured is covered for his
entire life but premiums are paid for a limited time. As the premium payment. Shortens,
cash values increase faster.
Single premium life - ANSWER-Allows the insured to pay the entire premium in one
lump sum and have coverage for the insureds entire life
Modified whole life - ANSWER-Low premiums in the early years and jumps to a higher
premium in the later years and remains fixed thereafter. Premiums increased just once.
Grated whole life - ANSWER-Starts out with a low premium then has a slight increase
yearly for a set period of time. Premiums then level off for the remainder of the policy.
