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Types of Life Insurance Policies Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Mr. Murray just graduated from college and landed his dream job. On his first day, he attends orientation, where the human resource representative explains retirement options. Which annuity option should Mr. Murray choose if he has a high risk tolerance?

Question 2 2. What is the correlation between risk and return?

Question 3 3. Which answer describes an equity-indexed annuity?

Question 4 4. Mrs. Sanders is one year from retirement and interested in investing in an annuity. Which annuity fits her needs best and why?

Question 5 5. What is an annuity?

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Question 6 6. Barry has purchased $300,000 worth of term life insurance coverage for 20 years. He chose the Multiyear or Level term life insurance. If his beginning monthly premiums are $24.06, what will his ending monthly premiums be?

Question 7 7. Which of these term life insurance policies offers a quicker acceptance process?

Question 8 8. Larry is upset that he is paying money every month for his term life insurance and that once the term expires, he loses everything. What type of term life insurance will suit him better?

Question 9 9. What is another name for decreasing term life insurance?

Question 10 10. Sue is looking to purchase term life insurance for 5 years at a time. She wants to renew every 5 years because she doesn't know what her circumstances will be after 5 years. What type will guarantee that her insurance will be renewed even if her health precludes it?

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Question 11 11. Which of the following is a possible consequence of a renewable term life insurance policy if the policy owner's health has dramatically decreased?

Question 12 12. Which option does a convertible term life insurance policy give to the buyer?

Question 13 13. Which of the following is TRUE of a convertible policy?

Question 14 14. Which of the following is TRUE of the benefits of renewable and convertible features of a term life insurance policy?

Question 15 15. Which of the following is TRUE of the premiums of a renewed term life insurance policy?

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Question 16 16. What type of annuity option involves paying a lump sum to fund the contract?

Question 17 17. Which of the following is NOT true of a flexible premium annuity?

Question 18 18. What type of annuity contract is funded with an initial payment and then subsequent contributions?

Question 19 19. Which of the following is NOT a characteristic of an annuity?

Question 20 20. Which of the following is NOT a characteristic of a single premium annuity?

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Question 21 21. Which type of insurance policy pays only one amount upon the death of the first of the two insured individuals?

Question 22 22. For whom is survivorship or second-to-die insurance best suited?

Question 23 23. Which of the following types of insurance policies pays a death benefit when each individual dies?

Question 24 24. Which of the following is NOT a characteristic of a survivorship or second-to-die insurance policy?

Question 25 25. Which of the following is NOT a characteristic of a joint insurance policy?

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Question 26 26. Which type of whole life insurance policy offers a saving portion that is dependent on investment vehicles like stocks and bonds?

Question 27 27. Which type of whole life insurance policy is paid over a specified amount of years but lasts a lifetime?

Question 28 28. Money that accumulates a cash value and is paid to a beneficiary when the policy holder dies is called what?

Question 29 29. The money that the beneficiary receives at the time of death is known as what?

Question 30 30. Which whole life insurance policy has a fixed interest rate?

Types of Life Insurance Policies Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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