Life & Health Insurance Question and Answers

Question 1

In a few ways, universal life insurance differs from whole life.
Potential policyholders should be aware of one significant distinction: With universal life, how quickly does the cash value from investments grow?

Accepted Answer

At a variable rate that is adjusted monthly

Answer

At a variable rate that is adjusted at any time the insured requests

Answer

At a variable rate that is adjusted yearly

Answer

At a fixed rate for the length of the policy

Question 2

The insured can choose from a variety of life insurance plans. What kind of coverage should an insured get if, after a predetermined number of years, they decide not to continue paying premiums?

Accepted Answer

Limited-pay life insurance

Answer

Single policy life insurance

Answer

Adjustable life insurance

Answer

One-time adjustable life insurance

Question 3

Which category of people should choose interest-sensitive whole life insurance as their life insurance policy?

Accepted Answer

Potential insureds requiring permanent insurance and desire a fixed premium

Answer

Potential insureds requiring insurance for a short period of time to satisfy a work need and a desire a fixed premium

Answer

Potential insureds who just need coverage for a short period of time

Answer

Potential insureds who need permanent insurance and want a variable premium

Question 4

What are the conditions under which traditional whole life insurance policies will give coverage?

Accepted Answer

It is for the entire life of the insured

Answer

It is available only if the insured’s death is caused by illness

Answer

It is available upon the insured’s death if the insured died suddenly and unexpectedly

Answer

It is triggered only upon the death of the insured

Question 5

What distinguishes adjustable life insurance policies from other types of life insurance?

Accepted Answer

Adjustable life insurance policies do not require the insured to purchase additional coverage or cancel when they have a life change

Answer

Adjustable life insurance policies require the insured to cancel if life changes occur that would affect the policy limits

Answer

Adjustable life insurance policies are much more restrictive in determining who the beneficiary can be

Answer

Adjustable life insurance policies have an age requirement

Question 6

Which sort of life insurance coverage has the major benefit of allowing premium money to be invested in a variety of investment options?

Accepted Answer

Variable life insurance

Answer

Whole life insurance

Answer

Adjustable life insurance

Answer

Limited-pay life insurance

Question 7

What would happen if a policyholder decides they no longer want to pay premiums on a conventional whole life insurance and requests that the insurer discontinue the coverage?

Accepted Answer

The insured would collect part of the premium already paid to the carrier

Answer

The insured would surrender all of the premium already paid to the carrier, and the policy would cancel

Answer

An insured cannot cancel a traditional whole life policy

Answer

The insured would be forced to pay for an additional year before coverage could be cancelled