Which type of life insurance policy generates immediate cash value
A. Single premium
B. Level Term
C. Decreasing Term
D. Continuous Premium
[bg_collapse view=”button-orange” color=”#4a4949″ icon=”arrow” expand_text=”Show Answer” collapse_text=”Hide Answer” ] A. Single premium [/bg_collapse]
Life Insurance Quiz / MCQs/ FAQs
Which of the following is correct regarding credit life insurance
A) It insures the life of a creditor.
B) It has a maximum term of 20 years.
C) It insures the life of a debtor.
D) It is purchased on an installment basis.
How does life insurance create an immediate estate
a) Cash value may be borrowed upon at any time
b) Nonforfeiture options are immediately available
c) The insured’s estate receives the death benefit
d) After first premium is paid, the face amount may be available to the beneficiary
A whole life insurance policy endows when the
a) Age of the Person is 10
b) Age of the Person is 20
c) Age of the Person is 50
d) Age of the Person is 100
How is Variable Whole Life different from Variable Universal Life?
A) It is designed to provide a hedge against inflation
B) Cash values can be invested in a separate account
C) The policyowner takes on all of the investment risk
D) The policy has a guaranteed minimum face amount
Life insurance policies will normally pay for losses arising from
a) commercial aviation
d) hazardous jobs
A life insurance policy would be considered a wagering contract without
A) agent solicitation.
B) premium payment.
C) constructive delivery.
D) insurable interest.
When does a life insurance policy typically become effective
a) When the policy is issued
b) When initial premium is collected and policy is issued
c) When the application is completed and signed
d) When the completed application is signed and initial premium is collected
What type of life insurance incorporates flexible premiums and an Adustable death Benefits?
A. Endowment Policy
B. Modified Whole Life
C. Decreasing Term
D. Universal Life
The double indemnity provision in a life insurance policy pertains to an insured’s death caused by a(n)
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