Page 1 of 101
NEVADA LIFE AND HEALTH INSURANCE EXAMS
(LATEST UPDATES STUDY BUNDLE
PACKAGE WITH SOLUTIONS) QUESTIONS AND
ANSWERS | GRADE A | 100% CORRECT (VERIFIED
SOLUTION)
term insurance .....ANSWER.....temporary protection because it
only provides coverage for a specific period of time
face amount .....ANSWER.....death benefit
3 basic types of term coverage .....ANSWER.....level, increasing,
decreasing
- based on how the face amount changes during the policy term
What is the premium in term insurance? .....ANSWER.....regardless
of type of term insurance purchased, premium is level throughout
the term of policy
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level term insurance .....ANSWER.....death benefit does not
change throughout the life of the policy
annually renewable term .....ANSWER.....premium increases
annually according to the attained age, guaranteed to be
renewable each year
decreasing term .....ANSWER.....level premium and death benefit
that decreases each year over duration of the policy term
increasing term .....ANSWER.....level premium and death benefit
that increases each year over the duration of the policy term
return of premium life insurance .....ANSWER.....an increasing term
policy that pays an additional death beneficiary equal to the
amount of the premiums paid
- return of premium is paid if the death occurs within a specified
period of time or if the insured outlives the policy term
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renewable provision .....ANSWER.....allows the policyowner the
right to renew coverage at the expiration date without evidence
of insurability
convertible provision .....ANSWER.....provides the policyowner the
right to convert the policy to a permanent insurance policy
without evidence of insurability
permanent life insurance .....ANSWER.....general term used to
refer to various forms of life insurance policies that build cash
value and remain in effect for the entire life of the insured (or
until age 100) as long as premium is paid
nonforteiture value .....ANSWER.....aka cash value, does not
usually accumulate until the third policy year and it grows tax
deferred
key characteristics of whole life insurance .....ANSWER.....- level
premium
- death benefit
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- cash value
- living benefits
3 basic forms of whole life insurance .....ANSWER.....1. straight
(ordinary) whole life
2. limited-pay whole life
3. single premium whole life
straight life .....ANSWER.....basic whole life policy; policy owner
pays the premium from the lime the policy is issued until insured's
death or age 100
- has lowest annual premium
limited-pay whole life .....ANSWER.....designed so that premiums
for coverage will be completely paid-up well before age 100
NEVADA LIFE AND HEALTH INSURANCE EXAMS
(LATEST UPDATES STUDY BUNDLE
PACKAGE WITH SOLUTIONS) QUESTIONS AND
ANSWERS | GRADE A | 100% CORRECT (VERIFIED
SOLUTION)
term insurance .....ANSWER.....temporary protection because it
only provides coverage for a specific period of time
face amount .....ANSWER.....death benefit
3 basic types of term coverage .....ANSWER.....level, increasing,
decreasing
- based on how the face amount changes during the policy term
What is the premium in term insurance? .....ANSWER.....regardless
of type of term insurance purchased, premium is level throughout
the term of policy
,Page 2 of 101
level term insurance .....ANSWER.....death benefit does not
change throughout the life of the policy
annually renewable term .....ANSWER.....premium increases
annually according to the attained age, guaranteed to be
renewable each year
decreasing term .....ANSWER.....level premium and death benefit
that decreases each year over duration of the policy term
increasing term .....ANSWER.....level premium and death benefit
that increases each year over the duration of the policy term
return of premium life insurance .....ANSWER.....an increasing term
policy that pays an additional death beneficiary equal to the
amount of the premiums paid
- return of premium is paid if the death occurs within a specified
period of time or if the insured outlives the policy term
,Page 3 of 101
renewable provision .....ANSWER.....allows the policyowner the
right to renew coverage at the expiration date without evidence
of insurability
convertible provision .....ANSWER.....provides the policyowner the
right to convert the policy to a permanent insurance policy
without evidence of insurability
permanent life insurance .....ANSWER.....general term used to
refer to various forms of life insurance policies that build cash
value and remain in effect for the entire life of the insured (or
until age 100) as long as premium is paid
nonforteiture value .....ANSWER.....aka cash value, does not
usually accumulate until the third policy year and it grows tax
deferred
key characteristics of whole life insurance .....ANSWER.....- level
premium
- death benefit
, Page 4 of 101
- cash value
- living benefits
3 basic forms of whole life insurance .....ANSWER.....1. straight
(ordinary) whole life
2. limited-pay whole life
3. single premium whole life
straight life .....ANSWER.....basic whole life policy; policy owner
pays the premium from the lime the policy is issued until insured's
death or age 100
- has lowest annual premium
limited-pay whole life .....ANSWER.....designed so that premiums
for coverage will be completely paid-up well before age 100
