The Least Expensive First Year Premium

Question: Graded Premium Whole Life policy premiums are typically lower initially but gradually increases for a period of 5-10 years. After the period of increase the premiums will

Answer: Be level there after

Question: Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?

Answer: Limited pay whole life

Question: The death benefit under the universal life Option B

Answer: Gradually increases each year by the amount that the cash value increases

Question: In an Adjustable Life policy all of the following can be changed by the policy owner EXCEPT

Answer: Type of investment

Question: Which of the following statements about group life is correct

Answer: The cost of coverage is based on the ratio of men and women in the group.

Question: Which of the following best describes annually term insurance

Answer: It is level term insurance

Question: To sell variable life insurance policies, an agent must receive all of the following EXCEPT

Answer: A SEC registration it is for securities not agents

Question: The least expensive first year premium is found in which of the following policies ?

Answer: Annually renewable term

Question: All of the following are characteristics of group life insurance except

Answer: Premiums are determined by the age, sex and occupation of each individual certificate holder.

Question: A man decided to purchase a $100000 annually renewable term life policy to provide additional protection until his children finished college. He discovered that his policy

Answer: Required a premium increase each renewal

Question: When would a 20-pay whole life policy endow?

Answer: When the insured reaches age 100

Question: Which type of life insurance policy generates immediate cash value ?

Answer: Single Premium

Question: Which option for universal life allow the beneficiary to collect both the death benefit and cash value upon the death of the insured ?

Answer: Option B

Question: An employee is insured under her employers group life plan. If she terminated her group coverage which of the following statements is INCORRECT

Answer: The insured may choose to convert to term or permanent individual coverage