Life Insurance Types
A permanent life insurance policy characterized by a flexible premium and death benefit.
Interest in the cash value accrues according to market interest rates. Minimum performance guarantees for the cash value interest rate may be available.
What is Universal Life Insurance?
An annuity characterized by a singular lump sum contribution that is converted into a guaranteed stream of income for a specified period of time.
What is an Immediate Annuity?
An agreement in the business where the entity itself buys the deceased's share of the business.
What is an Entity-Purchase Agreement?
This option allows the policy owner to terminate the policy and receives the remaining cash value within six months. Applicable only to permanent life insurance.
What is the Cash Surrender Value Option?
What is the most populous city in the world?
A. Los Angeles, USA
B. Shanghai, China
C. Dhaka, Bangladesh
D. Tokyo, Japan
Tokyo, Japan
37.1 million people
A permanent life insurance policy characterized by fixed premiums and a guaranteed minimum death benefit.
A cash value within the policy can be invested in subaccounts. The policy is considered a securities contract because of the investment risks.
What is Variable Life Insurance?
An annuity characterized by an accumulation phase where the money grows tax free and the insurer guarantees a certain rate of interest.
What is a Fixed Annuity?
A life insurance policy that a company buys on the life of a top executive or another critical individual.
What is Key Person Insurance?
This option allows the policyholder to use their cash surrender value to buy a paid-up version of the same type of life insurance policy, where premium payments are no longer necessary.
What is the Paid-Up Policy Option?
What is the only country in the world that is also a continent?
A. Australia
B. Africa
C. Europe
D. North America
Australia
A permanent life insurance policy characterized by a flexible premium and death benefit.
Interest in the cash value accrues according to the performance of the selected stock index.
What is Indexed Universal Life Insurance?
An annuity characterized by a contract with an insurance company that promises to pay the owner a regular income, or a lump sum, at some future date.
Growth options in these types of accounts are generally tax deductible.
What is a Deferred Annuity?
An agreement in the business where the remaining owners or partners purchase the share of the business that is for sale.
What is a Cross-Purchase Agreement?
This option allows the policy owner to use the cash value to purchase a term insurance policy with a death benefit equal to that of the original whole life policy.
What is the Extended-Term Insurance Option?
Which US states intersect at the Four Corners Monument?
Arizona, New Mexico, Utah, Colorado
A temporary life insurance policy characterized by fixed premiums and a death benefit that declines each year according to a predetermined schedule.
What is Decreasing Term Life Insurance?
An annuity characterized by earned interest based on changes in a market index, and a guaranteed minimum interest rate (even if the market is below 0).
What is a Fixed Indexed Annuity?
A nonqualified plan where the employer pays the premiums on a policy bought for a company executive (the policyowner).
What is an Executive Bonus Plan?
This provision allows the policy owner to convert the policy to an annuity, which will pay the policy owner an amount for the rest of his/her life.
What is a Single-Premium, Immediate Annuity.
What country has nearly 7,000 islands inside of its borders?
A. Philippines
B. China
C. Japan
D. Indonesia
The Philippines
A joint permanent life insurance policy characterized by fixed premiums and death benefit. A cash value is guaranteed.
The death benefit is only payed when both policyholders die.
What is Survivorship Whole Life Insurance?
A variable annuity characterized by a singular lump sum contribution that is converted into a guaranteed stream of income.
the payment amounts fluctuate based on the underlying portfolio's performance.
What is an Immediate Variable Annuity?
What does the acronym 'COLI' stand for?
Corporate-Owned Life Insurance
A life insurance policy that a company purchases on its employees. The company is the policyholder, premium payer, and beneficiary. Literally just another name for key person.
This provision allows the insurer to automatically deduct the premium amount overdue from the policy value.
What is the Automatic Premium Loan?
Which US city is the farthest west?
A. Bakersfield, CA
B. Los Angeles, CA
C. Fresno, CA
D. Reno, NV
Reno, NV