Under a variable life insurance contract, the guaranteed minimum death benefit is: the face amount of the

policy Which of the following is an example of a Limited-Pay Life policy? Life Paid-Up at Age 65 Joint Whole Life insurance is a form of which of the following? 3 year Modified whole Life Which of the following life insurance policies is representative of term insurance combined with investment choices? Variable Universal Life Life insurance policies do not contain many exclusions. However, they do exclude or limit benefits in the event of death resulting from special risk situations which are not anticipated in the normal risk selection process. Exclusions or restrictions are common in each of the following possible causes of death EXCEPT: death while a passenger on a public transportation system N decides to borrow one-half of the Cash Value available in a Whole Life policy. If N decides not to pay the interest when due, the company will: Add the interest to the loan balance R owns a 30-pay Life Policy that he purchased at the age of 30. When does the cash value equal the face value of this policy? 100 Which of the following statements are true about Universal Life Insurance policies? Premiums can be adjusted, but the payment due date cannot be changed An adjustable life insurance policy provides the flexibility to allow: the insured to change the face amount or the premium payments The cash value and death benefits increase on which of the following policies? Universal Life When the cash surrender value of a life insurance policy is used to purchase a policy marketed by another insurer, this is regarded as which of the following? External Replacement Z wants to buy Life Insurance that will allow Z to vary the premium payments and allow Z to determine how the Cash Value is invested. He should buy ______?Universal Variable Which of the following Term Insurance policies contains the lowest premium? Non-Renewable, Non-Convertible Term The face amount of a life insurance policy is the amount: to be paid upon the death of the insured person Which of the following statements is true about the premium payment schedule for a

Whole Life policy? Premiums are payable throughout the insured's lifetime, and coverage continues until the insured's death The cash value of a whole life insurance policy will equal the face amount of coverage: if the insured lives to be age 100 If a death claim is made while there is a loan against a life insurance policy: the loan amount plus interest will be deducted from the death benefit All of the following are true about term life insurance EXCEPT: term insurance is one of the least expensive forms of protection for older individuals An insurance prospect wants to purchase a policy that will accumulate the largest amount of cash by age 65. Which of the following policies would be most likely to satisfy the prospect's needs? Endowment at Age 65 policy Which of the following is NOT a feature of convertible term life insurance? Evidence of insurability is required at time of conversion A graded premium policy would do which of the following? Premium would increase each year for 5 years and then remain level

Term insurance pays benefits if the: insured dies during a specified time period For which of the following clients would you most likely recommend a modified whole life policy? A young couple wanting permanent coverage at a reduced premium Which characteristic makes Adjustable Life Insurance advantageous? Flexible premium policy Which of the following best describes a policy with a face amount that remains the same and requires a premium increase each year? Annual Renewable Term Individual life insurance may be written so that the cash value equals the face value of the policy before the insured reaches age 100. These policies with an accelerated cash value buildup are often used to accumulate funds for special purposes such as the education of the insureds children, or retirement. This type of policy is known as: endowment insurance Paid-up insurance is available under which of the following policies? Whole life Which of the following is NOT a characteristic of whole life or straight life insurance? The premiums are paid only until the insured reaches age 70 An insured has purchased a $100,000 whole life insurance policy. After a period of years, the cash value of the policy has grown to $42,000. If the insured dies at this time the beneficiary will receive:

$100,000 Which combines investment choices with Term Insurance? Universal Variable Whole Life If a policy is over funded according to IRS rules, it is known as a: MEC At age 30, A client wishes to purchase a Whole Life policy. The agent explains that payment may be made several ways. One method is called 20-Pay Life, and another, Straight Life. The client wishes to know which plan will accumulate cash value at a faster rate in the early years of the policy. Which of the following would be the agent's most appropriate response? 20-Pay Life will accumulate cash value faster A single parent is the primary support of three children and wishes to purchase as much insurance as possible and name the children as beneficiaries. Which would you suggest? Term A life insurance policy that begins with a low premium rate, which increases in steps over a period of years and then becomes a level premium policy, is known as a(n): graded premium policy Premium in Life Insurance is determined by: Risk classification What is Credit Life Insurance written as? Decreasing term The most significant characteristic of a single-premium whole life insurance policy is that the: entire cost of the policy is paid up at the time of purchase Credit Insurance must never: Exceed the limit of the debt. All of the following are true about a whole life insurance policy EXCEPT: premium payments increase with the age of the insured In a Universal life policy, all of the following permit tax-free access to the policy's cash value EXCEPT? Cash surrender M, age 27, is advised by an agent to purchase Life Insurance to cover a 20-year, $50,000 amortized business-improvement loan. Which of the following plans would adequately protect M at the minimum premium outlay? A $50,000 Decreasing Term policy for 20 years

Universal Life Insurance is which of the following? A flexible premium cash deposit and monthly renewable term coverage Mike wants to buy a life insurance policy that will cover premature death for his entire life.

What type of life insurance policy should he buy? Whole Life The distinguishing characteristic of variable life insurance is that the: amount of the death benefit changes, based on the performance of the investment account. A type of life insurance which is usually written for small amounts, and which requires frequent premium payments which are collected by the agent, is called: industrial life insurance A young married person is considering a permanent life insurance purchase. Which of the following types of policies would have the LOWEST premium rate per $1,000 of face value? Straight life whole life A Modified Endowment Contract is created when: The total premiums in the policys first seven years exceeds the net premiums of the seven-pay policy