Florida Life & Health Insurance - Types of Insurance Policies Test Questions and Correct Answers

Florida Life & Health Insurance - Types of Insurance Policies Test Questions and Correct Answers The most important factor to consider when determining whether to convert term insurance at the insurer's attained age or the insured's original age is; The cost Which type of policy is considered to be overfunded, as stated by IRS guidelines? Modified Endowment Contract What does a Face Amount Plus Cash Value Policy pay at the insured's death? Face amount plus the policy's cash value A policy that becomes a Modified Endowment Contract (MEC) will lose many of its tax advantages J is issued a Life Insurance policy with a death benefit of $100,000. She pays $600 per year in premium for the first 5 years. The premium then increases to $900 per year in the sixth year, and remains level thereafter. The policy's death benefit also remains at $100,000. Which type of Life Insurance policy is this? Modified Premium Life