NC LIFE INSURANCE EXAM ACTUAL PREP
QUESTIONS AND WELL REVISED ANSWERS -
LATEST AND COMPLETE UPDATE WITH
VERIFIED SOLUTIONS – ASSURES PASS
which rider allows a policy holder to increase coverage without proof of
insurability?
Guaranteed Insurability
what is the purpose of a waiver of premium rider?
Waives premium payments if the insured becomes disabled.
what is the primary advantage of a universal life policy over whole life?
More flexible premiums and death benefits
what is a benefit of a convertible term life insurance policy?
it allows the insured to convert to permanent coverage without proof of insurability
,what is the main advantage of an indexed universal life policy?
Cash value growth is tied to an equity index
which life insurance settlement option provides income for life?
Life Income
which of the following policies allows the policy holder to skip premiums if there
is sufficient cash value?
universal life
why type of Life insurance policy provides lifelong coverage and builds cash
value?
whole life
what is the main benefit of purchasing term life insurance?
offers affordable premium
,which type of Life insurance policy allows the policy holder to invest in sub
accounts similar to mutual funds?
variable life
what happens if a policy holder stops paying premiums on a whole life policy?
the cash value may be used to cover premiums
which of the following is a non forfeiture option in a permanent life insurance
policy? reduced paid up, extended term, cash surrender or all of the above
all of the above
what does the incontestability clause in a life insurance policy prevent?
the insurer from denying claims after a certain period
what is a characteristic of a Modified Endowment Contract MEC?
distributions are subject to taxation and penalties
, a graded premium whole life policy has...
Increasing premiums in the early years and then level premiums
which factor does not affect the cost of a life insurance policy?
the beneficiary's income
what is the primary purpose of the free-lock period in a life insurance policy?
allows the policy holder to review the policy and return it for a full refund
which type of life insurance policy combines a savings element with a death
benefit?
whole life
a policy loan can be taken from which type of life insurance policy?
QUESTIONS AND WELL REVISED ANSWERS -
LATEST AND COMPLETE UPDATE WITH
VERIFIED SOLUTIONS – ASSURES PASS
which rider allows a policy holder to increase coverage without proof of
insurability?
Guaranteed Insurability
what is the purpose of a waiver of premium rider?
Waives premium payments if the insured becomes disabled.
what is the primary advantage of a universal life policy over whole life?
More flexible premiums and death benefits
what is a benefit of a convertible term life insurance policy?
it allows the insured to convert to permanent coverage without proof of insurability
,what is the main advantage of an indexed universal life policy?
Cash value growth is tied to an equity index
which life insurance settlement option provides income for life?
Life Income
which of the following policies allows the policy holder to skip premiums if there
is sufficient cash value?
universal life
why type of Life insurance policy provides lifelong coverage and builds cash
value?
whole life
what is the main benefit of purchasing term life insurance?
offers affordable premium
,which type of Life insurance policy allows the policy holder to invest in sub
accounts similar to mutual funds?
variable life
what happens if a policy holder stops paying premiums on a whole life policy?
the cash value may be used to cover premiums
which of the following is a non forfeiture option in a permanent life insurance
policy? reduced paid up, extended term, cash surrender or all of the above
all of the above
what does the incontestability clause in a life insurance policy prevent?
the insurer from denying claims after a certain period
what is a characteristic of a Modified Endowment Contract MEC?
distributions are subject to taxation and penalties
, a graded premium whole life policy has...
Increasing premiums in the early years and then level premiums
which factor does not affect the cost of a life insurance policy?
the beneficiary's income
what is the primary purpose of the free-lock period in a life insurance policy?
allows the policy holder to review the policy and return it for a full refund
which type of life insurance policy combines a savings element with a death
benefit?
whole life
a policy loan can be taken from which type of life insurance policy?
