Chapter 12 Life Insurance Policies

7 Questions | Total Attempts: 3577

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Life Insurance Quizzes & Trivia

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.


Questions and Answers
  • 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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