Minnesota Life insurance Exam Questions With Complete Solutions | latest 2024

Ordinary Life - Several types of individual life ins Temporary term permanent whole universal, variable other interest sensitive plans Term life insurance - provides only a death benefit within a specified period of time whole life - provides death and living benefits Industrial Life encompasses home service insurance. Home service life insurance is - Home service life insurance is issued in very small face amounts, such as $1,000 to $5,000. The premiums are paid weekly or monthly. Group Life insurance - Written for members of a group, such as: An employer-employee group, Association, Union or Creditor-debtor group. Coverage is provided to the members of the group under one master contract. The group is underwritten as a whole, not on each individual member. Term insurance - provides a death benefit only if the insured dies within the policy period. Term insurance - appropriate for a person wanting to insure a short-term or long-term debt, such as a car loan or mortgage, respectively. Term insurance - appropriate for young families or young professionals who require a large amount of coverage, but cannot afford the larger premiums of permanent insurance until later on when their financials are more established. Level term ins - Annual renewable term and Level premium term.Annual renewable term - yearly renewable term (YRT) provides a level face amount with an increasing premium. it is guaranteed renewable annually without proof of insurability and usually has a maximum age at which the policy is no longer renewable. Level premium term - provides a level face amount with level premiums during the policy term. If the policy is renewed after the term expires, the policy premiums will be based on the insured's attained age, or the insured's present age at the time the policy is renewed. Level premium term - In order to provide a level premium, the policy must have a premium that is on average higher in early policy years in order to offset the lower premium in the policy's later years. Level Decreasing Increasing - There are three main types of term life insurance Term-to-65 - Option to Convert to Cash-Value Policy Decreasing Term ins - provides a face amount that decreases to zero over the policy period. The face amount equals zero on the day the policy expires. The premiums are level. Some decreasing term insurance is convertible, but is usually not renewable upon policy expiration because the face amount is zero at the time of policy expiration. Decreasing term ins - mortgage protection to pay off the mortgage in the event that the debt is outstanding when the insured dies. Increasing term - provides an increasing face amount with level premiums. The increase occurs at certain intervals over the policy period. This insurance is not as common as other types of term insurance Increasing term - Rising Death BenefitReentry term ins - sometimes referred to as reissue, permits the policyowner to renew a term life policy at the end of the policy period by providing evidence of insurability, so the insured can obtain a lower premium than the renewal premium that is offered without evidence of insurability