Life Questions
This list shows all of the questions that you missed in the session you just completed. The answer you selected is in bold. The correct answer is highlighted inyellow.
#4. All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT
a)Any type of insurance policy may be used.
b)The employer pays a bonus to a selected employee to fund the policy
c)It is considered a nonqualified employee benefit.
d)The policy is owned by the company.
The policy is owned by the employee.
#15 Which of the following riders provides for a waiver of premium when the policy owner and the insured are NOT the same person?
a)Conditions for payment
b) Payor benefit
c) Waiver of premium
d)Waiver of the cost of insurance
The payor benefit waives the premium of the owner when the owner becomes disabled and is a person other than the insured.
#20. All other factors being equal, the least expensive first-year premium payment is found in
a) Increasing Term.
b) Decreasing Term.
c) Level Term.
D) Annually Renewable Term. Annually renewable term is the purest form of term insurance. The death benefit remains level, but the premium increases each year with the insured's attained age. In decreasing policies, while the face amount decreases, the premium remains constant throughout the life of the contracts. In level term and increasing term policies, the premium also remains level for the term of the policy. Therefore, in the other types of level policies, the first-year premium would not be different from any other year.
#23. Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?
A) Life annuity, period certain
B) Increasing term insurance
c) Limited pay whole life insurance
D) 10-year endowment Premium payments will cease at her age 65, but coverage will continue to her death or age 100.
#26. An
#4. All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT
a)Any type of insurance policy may be used.
b)The employer pays a bonus to a selected employee to fund the policy
c)It is considered a nonqualified employee benefit.
d)The policy is owned by the company.
The policy is owned by the employee.
#15 Which of the following riders provides for a waiver of premium when the policy owner and the insured are NOT the same person?
a)Conditions for payment
b) Payor benefit
c) Waiver of premium
d)Waiver of the cost of insurance
The payor benefit waives the premium of the owner when the owner becomes disabled and is a person other than the insured.
#20. All other factors being equal, the least expensive first-year premium payment is found in
a) Increasing Term.
b) Decreasing Term.
c) Level Term.
D) Annually Renewable Term. Annually renewable term is the purest form of term insurance. The death benefit remains level, but the premium increases each year with the insured's attained age. In decreasing policies, while the face amount decreases, the premium remains constant throughout the life of the contracts. In level term and increasing term policies, the premium also remains level for the term of the policy. Therefore, in the other types of level policies, the first-year premium would not be different from any other year.
#23. Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?
A) Life annuity, period certain
B) Increasing term insurance
c) Limited pay whole life insurance
D) 10-year endowment Premium payments will cease at her age 65, but coverage will continue to her death or age 100.
#26. An