NC LIFE INSURANCE PRACTICE EXAM QUESTIONS 100%COMPLETE ALREADY A+ (LATEST 2024)

A college student will graduate next year. His studies have limited his ability to work, so he has borrowed funds to pay for his education. He would like to start a permanent life insurance program that would cover his debt and still be affordable during the period he is establishing his earning potential. An appropriate policy would be a). Level Term to age 65 b). Single Premium Whole Life c). Modified Whole Life d). Current Assumption Whole Life - ANS-c). Modified Whole Life Modified life required low premiums at the beginning of the policy. The premiums are increased at a later date, usually three to five years after the issue. A group of 15 skydivers met at a seminar and began talking about life insurance during a break. Because it was expensive to get individual life insurance, they decided to band together to form a small group so that they could qualify for group life insurance. After they applied for group life insurance, they were rejected. Why? a)There are not enough people in the group to qualify for group life insurance. b)The group has not been established for long enough. c)The purpose of the group was to purchase life insurance. d)Their profession poses too high of a risk for the insurer. - ANS-c)The purpose of the group was to purchase life insurance. In order to qualify for small group life insurance, a group must be formed for a purpose other than attaining life insuraA college student will graduate next year. His studies have limited his ability to work, so he has borrowed funds to pay for his education. He would like to start a permanent life insurance program that would cover his debt and still be affordable during the period he is establishing his earning potential. An appropriate policy would be a). Level Term to age 65 b). Single Premium Whole Life c). Modified Whole Life d). Current Assumption Whole Life - ANS-c). Modified Whole Life Modified life required low premiums at the beginning of the policy. The premiums are increased at a later date, usually three to five years after the issue. A group of 15 skydivers met at a seminar and began talking about life insurance during a break. Because it was expensive to get individual life insurance, they decided to band together to form a small group so that they could qualify for group life insurance. After they applied for group life insurance, they were rejected. Why? a)There are not enough people in the group to qualify for group life insurance. b)The group has not been established for long enough. c)The purpose of the group was to purchase life insurance. d)Their profession poses too high of a risk for the insurer. - ANS-c)The purpose of the group was to purchase life insurance. In order to qualify for small group life insurance, a group must be formed for a purpose other than attaining life insura