Chapter 12 Life Insurance Policies
Insurance companies were created to ensure that customers are cushioned from the repercussions of a risk occurring. Life insurance is a contract in which a person’s beneficiaries get some paint after the insured`s death. The quiz below is designed to help you review chapter 12 on life insurance policies that we covered in class. Give it a try and see what you’ve got.
- 1.An insured wants to purchase a policy with 3 key features: flexible premium, death benefits, and the choice of how the cash value will be invested. The insured should purchase:
- A.
Adjustable Life
- B.
Universal Life
- C.
Graded Premium Whole Life
- D.
Variable Universal Life
- 2.All of the following are characteristics of a Universal Life policy EXCEPT:
- A.
The policy has a cash value account at a guaranteed interest rate and endowment insurance
- B.
The insurance company reserves the right to adjust the mortality charges and/or interest rate
- C.
The planned premium pays for mortality charges and expenses and any excess is returned to the policy owner
- D.
In effect, Universal Life is a combination of term insurance and a separate savings account joined in a single contract
- 3.A Universal Life insurance policy has two types of interest rates that are called?
- A.
Option A and Option B
- B.
Guaranteed and current
- C.
Fixed and Variable
- D.
Minimum and Target
- 4.Arnold purchased a $100,000 Joint Life policy that covered himself and his wife Sarah. Eight years later, Arnold died in an automobile accident. How much will Sarah receive from the policy?
- A.
$200,000
- B.
$100,000
- C.
Nothing
- D.
$50,000
- 5.Which of the following type of insurance covers the whole family in a single contract?
- A.
Survivorship Policy
- B.
Whole Life Policy
- C.
Family Income Policy
- D.
Family Policy
- 6.Which of the following is known as Mortgage Protection?
- A.
Expired Term
- B.
Increasing Term
- C.
Decreasing Term
- D.
Whole Term
- 7.Your client wants both protection and savings from insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?
- A.
Life Annuity, Period Certain
- B.
Limited Pay Whole Life insurance
- C.
Increasing Term insurance
- D.
10-year endowment
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