Types of Life Policies (ucanpass)
(examfx)
What policy component must decrease in decreasing term insurance? - answer Face
Amount
What type of policy is typically issued without proof of insurability from the insured? -
answer Group policy
What are the death benefit options is universal life policies? - answer Option A- level
death benefit, Option B- increasing death benefit
Why are policy loans not available on term insurance? - answerThere is no cash value
to borrow against
Under Option B in a universal life policy, what happens to the death benefit? -
answerThe death benefit increases eachyear by the amount of cash value increases
What type of whole life insurance policies only requires a payment of premium at its
inception, and in addition to providing insurance protection for the life of the insured,
endows at the insured's age 100? - answerSingle premium whole life
What is the purpose of establishing the target premium for a universal life policy? -
answerTo prevent the policy from lapsing
When the amount of insurance is increased in an adjustable life policy, what will the
insurer require from the insured? - answerEvidence of insurability
what type of life insurance is best suited to cover a mortgage? - answerDecreasing term
In term policies, what happens to the premium throughout the term of the policy? -
answerThe premium remains level
What type of policy issues certificates of insurance to the insureds? - answerGroup
policy
What are the characteristics of the group that underwriters will consider before issuing a
group life policy? - answerGroups purpose, size, financial strength and turnover
What is the main advantage of converting from group life insurance to individual
coverage? - answerEvidence of insurability is not required
(examfx)
What policy component must decrease in decreasing term insurance? - answer Face
Amount
What type of policy is typically issued without proof of insurability from the insured? -
answer Group policy
What are the death benefit options is universal life policies? - answer Option A- level
death benefit, Option B- increasing death benefit
Why are policy loans not available on term insurance? - answerThere is no cash value
to borrow against
Under Option B in a universal life policy, what happens to the death benefit? -
answerThe death benefit increases eachyear by the amount of cash value increases
What type of whole life insurance policies only requires a payment of premium at its
inception, and in addition to providing insurance protection for the life of the insured,
endows at the insured's age 100? - answerSingle premium whole life
What is the purpose of establishing the target premium for a universal life policy? -
answerTo prevent the policy from lapsing
When the amount of insurance is increased in an adjustable life policy, what will the
insurer require from the insured? - answerEvidence of insurability
what type of life insurance is best suited to cover a mortgage? - answerDecreasing term
In term policies, what happens to the premium throughout the term of the policy? -
answerThe premium remains level
What type of policy issues certificates of insurance to the insureds? - answerGroup
policy
What are the characteristics of the group that underwriters will consider before issuing a
group life policy? - answerGroups purpose, size, financial strength and turnover
What is the main advantage of converting from group life insurance to individual
coverage? - answerEvidence of insurability is not required
