Question: Which of these is NOT considered a type of limited payment whole life insurance?

Life paid-up at 65

20 payment life

15 payment life

Endowment at age 70

Answer: Endowment at age 70

Question: What kind of life policy typically offers mortgage protection?

Whole life

Decreasing term

Increasing term

Level term

Answer: Decreasing

Question: Which of these policies is considered a whole life policy?

Credit life

Single premium life

Renewable life

Convertible life

Answer: single premium life

Question: What kind of life insurance policy allows a policyowner the choice of investments along with flexible premium payments?

Variable universal life

Modified endowment contract

Adjustable life

Graded premium whole life

Answer: Variable universal life

Question: Straight whole life insurance can be accurately described in all of these statements EXCEPT

Policy protection normally expires at age 65

Nonforfeiture values are available to the policyowner

Provides level protection with level premiums

Cash value loans are permitted

Answer: Policy protection expires at age 65

Question:

Answer: cash benefit

Question: Taxable income may be the result from all of these modified endowment contract (MEC) transactions EXCEPT for

A cash value loan is taken out

Automatic premium loan provision is utilized

The policy is surrendered for less than what was paid into it

Dividend is issued

Answer: the Policy is surrendred for less than what was paid into it

Question: What type of life insurance policy covers two or more persons and pays the face amount upon the death of the first insured?

Joint and survivorship

Survivorship life

Universal life

Joint life

Answer: JOINT

Question: At what point are death proceeds paid in a joint life insurance policy?

When the first insured dies

When the second insured dies

Only after insurable interest has been confirmed to still exist

If both insureds die from the same accident

Answer: when first dies

Question: What is the face amount of a $50,000 graded death benefit life insurance policy when the policy is issued?

$0

$50,000

Under $50,000 initially, but decreases annually over time

Under $50,000 initially, but increases over time

Answer: under 50,000 increase over time