TYPE OF INSURANCE POLICIES XCEL
CH. #4 EXAM 1 QUESTIONS AND
ANSWERS
What type of life policy has a death benefit that adjusts periodically and is written for
a specific period of time? - ANSWER-Decreasing term
T has a term policy that allows him to continue the coverage after expiration of the
initial policy period. What type of term coverage is this? - ANSWER-renewable
Mortgage protection is usually covered by what type of insurance? - ANSWER-
Decreasing term
Which of these can be altered by the policy up in an adjustable (aka
blended/combination) life insurance policy? - ANSWER-Premium payment amount
When is the face amount paid under a joint life and survivor policy? - ANSWER-upon
death of the last insured
Variable Whole Life Insurance can be described as - ANSWER-both an insurance
and securities product
P is looking to purchase a life insurance policy that will pay a stated monthly income
to his beneficiaries for 20 years after he dies and a lump sum of $20,000 at the end
of that 20 year period. What type of policy should P purchase? - ANSWER-Family
Maintenance Policy
Life insurance that covers an insureds Whole life with level premiums paid over a
limited time is called - ANSWER-Limited pay whole life
Which is true concerning a variable universal life policy - ANSWER-Policy owner
Controls where the investment will go and selects the amount of the premium
payment
Which of these life product is not considered interest-sensitive - ANSWER-Modified
whole life
S is covered by a whole life policy. Which insurance product can cover his children?
- ANSWER-Child term rider
All of these are characteristics of an adjustable life policy except - ANSWER-face
amount can be adjusted using policy dividends
What advantage does an equity indexed insurance policy have over a variable life
policy - ANSWER-A minimum guaranteed rate of return
CH. #4 EXAM 1 QUESTIONS AND
ANSWERS
What type of life policy has a death benefit that adjusts periodically and is written for
a specific period of time? - ANSWER-Decreasing term
T has a term policy that allows him to continue the coverage after expiration of the
initial policy period. What type of term coverage is this? - ANSWER-renewable
Mortgage protection is usually covered by what type of insurance? - ANSWER-
Decreasing term
Which of these can be altered by the policy up in an adjustable (aka
blended/combination) life insurance policy? - ANSWER-Premium payment amount
When is the face amount paid under a joint life and survivor policy? - ANSWER-upon
death of the last insured
Variable Whole Life Insurance can be described as - ANSWER-both an insurance
and securities product
P is looking to purchase a life insurance policy that will pay a stated monthly income
to his beneficiaries for 20 years after he dies and a lump sum of $20,000 at the end
of that 20 year period. What type of policy should P purchase? - ANSWER-Family
Maintenance Policy
Life insurance that covers an insureds Whole life with level premiums paid over a
limited time is called - ANSWER-Limited pay whole life
Which is true concerning a variable universal life policy - ANSWER-Policy owner
Controls where the investment will go and selects the amount of the premium
payment
Which of these life product is not considered interest-sensitive - ANSWER-Modified
whole life
S is covered by a whole life policy. Which insurance product can cover his children?
- ANSWER-Child term rider
All of these are characteristics of an adjustable life policy except - ANSWER-face
amount can be adjusted using policy dividends
What advantage does an equity indexed insurance policy have over a variable life
policy - ANSWER-A minimum guaranteed rate of return
