NC State Questions Life Insurance

Combination of term insurance protection and cash accumulation plan. - Answer- Witch of the following combinations best describes a Universal Life policy? The policy's cash value decreases each year the policy is in force - Answer- Which of the following statements describes whole life insurance is INCORRET? The cash value is equal to the policy's face amount. - Answer- At age 100 the whole life policy is said to mature (endow) because? The insured overpays in the early years - Answer- The level premium concept works on the premise: There is not a guarantee maximum premium stated in the contract that the policy could ever go above. - Answer- Which of the following is not true regarding an indeterminate premium policy? " They have to ten what that max cover is" The face amount of the contract is paid if the insured lies within a specific period. - Answer- What does an endowment and term policy have a common? At the inception of the policy - Answer- In a family income policy, when does the clock start? Modified life - Answer- What policy is also known as automatically convertible term? Maturity at age 100 it was increased premiums - Answer- Which of the following is NOT characteristic of whole life? -These policies are usually not participate in policy is issued by stock companies. -usually have an initial low current premium cost for a specific period of time. -future premiums adjustable are based on the insurance companies anticipated future experience. - Answer- Which of the following is TRUR regarding an indeterminate premium policy? -Guaranteed cash value, -Level death benefit with level premiums, -maturity at age 100 with premiums payable at age 100 - Answer- Which of the following is a characteristic of whole life: Indeterminate - Answer- Another word for a non-guarantee or current premium is Joint life policy - Answer- A policy written to ensure two or more individuals with face amount paid upon the death of the first to dies is a: Current assumption whole life - Answer- Which of the following policies would be most "interest sensitive " Is determined by the investment next experience of the separate accounts. - Answer- The cash value of a variety life policy? Purchase a 10 year endowment policy - Answer- A person pledges $15,000 to their church to cover expenses for the new roof. The roof will need to be replaced in approximately 10 years. What is the best way to be sure that that $15,000 will be available when needed?