Pennsylvania Life Insurance - Types of Policies Test Questions and Correct Answers

The insurance coverage in a variable life insurance policy may fluctuate based on the value of its underlying investments What is a juvenile life insurance policy? A life policy that covers the life of a minor Which statement regarding whole life insurance is accurate? Insurance coverage can continue for life What type of policy can group term life insurance normally be converted to? A group permanent policy Which of these must be disclosed in a universal life policy? Surrender Charges Peter, age 50, surrenders his modified endowment contract (MEC). How is the gain treated in terms of federal income taxes? The gain is treated as taxable income and a penalty tax is imposed on the gain Any employee insured under a group life insurance plan is normally protected by term life insurance A survivorship life insurance policy usually covers how many lives? 2 Which statement concerning a decreasing term life policy is accurate? Face amount decreases over time What situation requires all eligible employees be covered under a group life insurance plan? Entire premium paid by the employer What is the cash value of a straight whole life insurance policy when the insured turns 65 years old? Less than the policy's face amount Why would evidence of insurability be required for a person insured with a variable universal life policy? The face amount is increased How long does one premium payment cover in a single premium whole life policy? Entire length of the policy