A common use of second-to-die life insurance is A) insuring children. B) insuring “double income with kids” families. C) estate planning. D) insuring key employees of a business. ANSWER Answer: C
Date: September 19th, 2020
Which of the following statements about second-to-die life insurance is (are) true? I. The insurance is a form of endowment coverage. II. The premium is lower than the combined cost of purchasing a life insurance policy on each insured. A) I only B) II only C) both I and II D) neither I nor II […]
Date: September 19th, 2020
Gwen purchased an interesting life insurance policy. A minimum interest rate is guaranteed on the cash value, but additional interest may be credited based on the investment performance of a group of common stocks. There is also a cap on the additional interest credited to the policy. Based on this information, what type of life […]
Date: September 19th, 2020
Which of the following statements about savings bank life insurance is true? A) The maximum amount that a depositor can purchase is $50,000. B) The maximum amount of insurance that a depositor can purchase is limited to the amount of money on deposit in his or her savings account with the savings bank. C) The […]
Date: September 19th, 2020
Which of the following statements about indexed universal life insurance is true? A) It is another name for variable life insurance. B) Although a minimum interest rate is guaranteed, the rate credited can be higher if a specified stock index performs well. C) The cash value is usually credited with 100 percent of the return […]
Date: September 19th, 2020
Which of the following statements about home service life insurance, which evolved over time from a type of life insurance called industrial life insurance, is true? A) Most policies have a face value exceeding $100,000. B) Premiums are usually not collected at the insured’s home and are remitted directly to the agent or the insurer. […]
Date: September 19th, 2020
All of the following statements about employer-provided group life insurance are true EXCEPT A) Individual evidence of insurability, through a medical exam, is usually required. B) Group life insurance is a common employee benefit. C) A single contact between the employer and the insurer is issued. D) Employees are given certificates of insurance as evidence […]
Date: September 19th, 2020
Carl would like to purchase life insurance. He would also like to invest in a mutual fund. An agent told Carl about a form of life insurance in which Carl could select where the saving component is invested. This form of life insurance has fixed premiums and the cash value is not guaranteed. This type […]
Date: September 19th, 2020
Which of the following statements about the ownership of a life insurance policy is (are) true? I. Under the ownership clause, the policyholder and beneficiary equally share all contractual rights in the policy while the insured is living. II. The policyholder can designate a new owner by filing an appropriate form with the insurance company. […]
Date: September 19th, 2020
Tamara purchased a term insurance policy when she had high life insurance needs and limited income. Now Tamara can afford whole life insurance. What term life insurance provision will permit Tamara to switch her term insurance to whole life insurance without having to show that she is still insurable? A) renewal provision B) tax-free exchange […]
Date: September 19th, 2020
