Question:

Answer: Whole Life policy with an Other Insured Rider

Question: A 15-year mortgage is best protected by what kind of life policy?

Modified whole life

15-year level term

15-year decreasing term

Adjustable life

Answer: 15-year decreasing term

Question:

Answer: Policyowner controls where the investment will go and selects the amount of the premium payment

Question: Under a Graded Premium policy, the premiums:

are higher during the policy’s early years

are lower during the policy’s early years

are constant throughout the length of the policy

can be adjusted by the insured

Answer: are lower during the policy’s early years

Question: T would like to be assured $10,000 is available in 10 years to replace a roof on his house. What kind of $10,000 policy should T purchase?

Interest-Sensitive Whole Life

Ten-Year Endowment

Variable Universal Life

Ten-Year Renewable Term

Answer: Ten-Year Endowment

Question: J is 35-years old and looking to purchase a whole life insurance policy. Which of the following types of policies will provide the most rapid growth of cash value?

Life Paid-up at Age 70

20-pay Life

Increasing Term to age 65

Straight Life

Answer: 20-pay Life

Question:

Answer: The premiums can be lowered or raised, based on investment performance

Question: What type of life policy covers 2 lives and pays the face amount after the first one dies?

Group Life

Joint Life Policy

Family Income Policy

Last Survivor

Answer: Joint Life Policy

Question: A(n) __________ Life policy offers the owner investment in products such as money-market funds, long-term bonds and equities.

Adjustable

Term

Universal

Variable

Answer: Variable

Question: When a life insurance policy exceeds certain IRS table values, the result would create which of the following?

1035 Exchange

An Investment

Modified Endowment Contract (MEC)

Endowment

Answer: Modified Endowment Contract (MEC)