Question 1

Russell Lowe has a life insurance policy that allows him to pay his premiums virtually at any time and virtually in any amount,subject to certain minimums.What type of insurance does Russell likely have?

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Question 2

A suicide clause means that the insurance company:

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Question 3

Frank Keating has a life insurance policy that can be exchanged for a whole life policy without a medical examination.Once it has been exchanged,the premiums will increase.What type of term life insurance does Frank likely have?

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Question 4

A beneficiary is a person who:

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Question 5

Richard Beck has a life insurance policy which he has altered to include an accidental death benefit payable to his son and daughter.This alteration has most likely been done by attaching a(n)____ to the policy.

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Question 6

Lori Simpson is thinking about purchasing some life insurance.She goes to a company where the policyholders are essentially the owners of the company.What type of life insurance company has she visited?

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Question 7

Your life insurance policy is valuable only if it:

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Question 8

Lisa Smith has her age listed on her driver's license as being three years younger than it actually is.This is also how old she tells her insurance company she is.Her insurance company has discovered she lied about her age.What provision of her life insurance contract states that her benefits will be what her premium would have bought if she had been truthful about her age?

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Question 9

Jim Brown has a life insurance policy that allows him to change his policy to fit his changing needs.He can change either the premium he pays or the period of coverage.What type of insurance does Jim likely have?

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Question 10

Jerry Lewis is thinking about purchasing some life insurance.He goes to a company that is owned by shareholders.What type of life insurance company has he visited?

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Question 11

Jane Curtain has a participating life insurance policy that returns part of her premiums at the end of the year.What is the money that is returned to Jane called?

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Question 12

Francesca Brown has a life insurance policy that provides her with protection for the next five years.However,she can get five more years of protection at the end of this term without having to have a medical examination because she will be less than 70 years old at that time.Her premiums will rise during each five-year period.What type of term life insurance does Francesca likely have?

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Question 13

Which of the following statements is true about group life insurance?

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Question 14

The grace period normally allows ____________ days to elapse,during which time the premium may be paid on an insurance policy.

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Question 15

Renee Warning has a life insurance policy where the payments to beneficiaries get smaller as time passes.What type of term life insurance does Renee likely have?

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Question 16

Taylor Jones has a life insurance policy that returns every cent she pays in premiums if she outlives the term of the policy.She knows this policy costs 30 to 50 percent more than a traditional policy but thinks it is worth it.What type of term life insurance does Taylor have?

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Question 17

Tim Bridges has a life insurance policy where he makes payments of $265 per year until he reaches the age of 65.His policy is then 'paid up' for life.His beneficiaries will receive the face value upon his death.What type of life insurance does Tim likely have?

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Question 18

Shelley Jackson has a life insurance policy where she makes payments of $185 per year for the rest of her life.This policy has a cash value that increases while she continues to make payments.If she gives up her insurance,the cash value is the amount she would receive from this policy.What type of life insurance does Shelley likely have?

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Question 19

Which of the following names refer to permanent insurance?

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Question 20

John Camey has a life insurance policy that is tied to a separate stock fund.The cash value of his insurance policy depends on the value of this fund.He is guaranteed a minimum death benefit but the death benefit can be higher,depending on the value of the fund.What type of life insurance does John likely have?

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Quiz 12: Life Insurance