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RMIN 4000 TEST 3 BROWN EXAM 2025
BRAND NEW ACTUAL EXAM WITH 100%
VERIFIED QUESTIONS AND CORRECT
SOLUTIONS| ACE YOUR GRADES.
Method for converting term policy: original age method - correct
answer --premium charged for the new policy is based on the
insured's original age when the term insurance was first
purchased
-usually required within a certain time period from inception of
original policy
-financial adjustment is required at conversion
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When is term insurance appropriate? - correct answer -The
amount of income that can be spent on life insurance is limited
The need for protection is temporary
The insured wants to guarantee future insurability
Limitations of Term Insurance - correct answer --Premiums
increase with age at an increasing rate
-Inappropriate if you wish to save money for a specific need
types of cash value life insurance - correct answer --wholesale life
insurance
-variable life insurance
-universal life insurance
Whole life insurance - correct answer -a permanent policy for
which you pay a specified premium each year for the rest of your
life; beneficiary receives the full designated amount following
death
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Ordinary Life Insurance - correct answer -a level-premium policy
that accumulates cash values and provides lifetime protection to
age 121; option for cash surrender value
Cash Surrender Value - correct answer -the amount paid to a
policyholder who surrenders the policy early
limited-payment life insurance - correct answer -the insured has
lifetime protection, and premiums are level, but they are paid only
for a certain period
advantages of whole life insurance - correct answer -• Covers the
entire life of the insured
• Living benefits - cash value and policy loans
• Fixed premiums
Disadvantages of whole life insurance - correct answer -very
expensive compared to term life insurance, high commissions,
low rate of return compared to stock investments, complex,
illustrations can be misleading.
RMIN 4000 TEST 3 BROWN EXAM 2025
BRAND NEW ACTUAL EXAM WITH 100%
VERIFIED QUESTIONS AND CORRECT
SOLUTIONS| ACE YOUR GRADES.
Method for converting term policy: original age method - correct
answer --premium charged for the new policy is based on the
insured's original age when the term insurance was first
purchased
-usually required within a certain time period from inception of
original policy
-financial adjustment is required at conversion
, Page | 2
When is term insurance appropriate? - correct answer -The
amount of income that can be spent on life insurance is limited
The need for protection is temporary
The insured wants to guarantee future insurability
Limitations of Term Insurance - correct answer --Premiums
increase with age at an increasing rate
-Inappropriate if you wish to save money for a specific need
types of cash value life insurance - correct answer --wholesale life
insurance
-variable life insurance
-universal life insurance
Whole life insurance - correct answer -a permanent policy for
which you pay a specified premium each year for the rest of your
life; beneficiary receives the full designated amount following
death
, Page | 3
Ordinary Life Insurance - correct answer -a level-premium policy
that accumulates cash values and provides lifetime protection to
age 121; option for cash surrender value
Cash Surrender Value - correct answer -the amount paid to a
policyholder who surrenders the policy early
limited-payment life insurance - correct answer -the insured has
lifetime protection, and premiums are level, but they are paid only
for a certain period
advantages of whole life insurance - correct answer -• Covers the
entire life of the insured
• Living benefits - cash value and policy loans
• Fixed premiums
Disadvantages of whole life insurance - correct answer -very
expensive compared to term life insurance, high commissions,
low rate of return compared to stock investments, complex,
illustrations can be misleading.
