Which statement is correct about whole life insurance? Whole life insurance builds up cash value. The cash values of a ____________ life insurance policy fluctuate according to the yields earned by a separate fund, which can be a stock fund, a money market fund, or a long-term fund. Which statement regarding the cash value of a whole life insurance policy is correct? question Initial premium is lower than for an equivalent amount of term insurance I use annual dividends on the whole life insurance policy to pay my annual premiums. Since my dividends for the tax year exceed my annual premiums, I get these 1099-R statements. So if the excess dividends are reinvested, why would I be getting the 1099-R since no money is actually distributed to me?
modified whole life. All of these statements about Equity Indexed Life Insurance are. The Consideration clause in a life insurance contract contains what pertinent information? Amount of premium payments and when they are due. P purchases a $50,000 whole life insurance policy in 2005. One of the questions on the application asks if P engages in scuba diving, to which P answers 'No'. The policy is then issued with no scuba. 'Term' life insurance is a policy that provides the insured person coverage for a certain period of time. On the other hand, a 'whole' or 'universal' policy is considered permanent, providing.
Which of the following statements describing whole life insurance is correct? A. The face amount of the policy gradually increases the longer the policy remains in force. B. The shorter the premium period, the slower the cash value will grow. C. Whole life insurance is designed to mature at age 100. D. Which of the following statements about group term life insurance is true? A) It usually is written in the form of 5-year level term insurance. B) An employee who leaves the group is usually not permitted to convert to individual coverage. C) Experience rating is used in group term life insurance plans.
Which of the following statements about whole life insurance cash values is (are) true? 1. Cash values are a result of the level premium method of purchasing life insurance. II. The cash value of a whole life policy eventually grows to equal the face value of the policy a) I only Ob) ll only Oc) both 1 and 11 d) neither I nor II Which statement regarding universal life insurance is correct? a. Cash value accumulations have a guaranteed minimum interest rate b. Policyowner can change the face amount but not the premium c. Policyowner can change the premium but not the face amount d. Partial withdrawals cannot be made from the policy's cash value
Which statement regarding the cash value of a whole life insurance policy is correct? Available to the policyowner when policy has been surrendered Which of these is NOT considered a type of limited payment whole life insurance? Which of the following statements describing whole life insurance is CORRECT? (A) The face amount of the policy gradually increases the longer the policy remains in force. (B) The shorter the premium period, the slower the cash value will grow. (C) Whole life insurance is designed to mature at age 100. All of the following statements concerning whole life insurance are true except? a. Level premium whole life insurance accumulates a cash value that eventually reaches the face value of the policy at age 100. b. Whole life insurance offers permanent protection throughout the insured’s lifetime. c. Whole life insurance can be participating.
Which statement is correct regarding the premium payment schedule for whole life policies? Premiums are payable throughout the insured's lifetime/ coverage lasts until death of the insured What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies? Explanation: (Life Insurance Policy Provisions, Options and Riders)There are only three non-forfeiture options: 1) Cash Surrender, 2) Reduced Paid-Up and the automatic option, 3) Extended Term. Their purpose is to protect the insured's accumulated cash values in case the Whole Life or Endowment policy lapses. all of the following statements regarding basic forms of whole life insurance are correct EXCEPT. a. generally, straight life premiums are payable, at least annually, for the duration of the insured's life. b. the owner of a 30 pay life policy will owe no more premiums after the 30th year the policy is in force
Initial premium is lower than for an equivalent amount of term insurance -Correct. The initial cost of whole life insurance is actually HIGHER than an equivalent amount of term insurance. Whole life insurance is a type of permanent life insurance (also known as cash value life insurance) that provides coverage for your entire life, while the policy’s cash value earns interest at a rate determined by your insurer. Which of the following statements is true regarding life insurance? Choose one answer. a. All life insurance is issued on a participating basis. b. Life insurance eliminates risk. c. There are many uses of life insurance in addition to survivor protection, such as cash accumulation, liquidity, estate creation and conservation. d.
Which statement is correct about whole life insurance? 17 17 O At first, it is cheaper than term life. It builds up cash value. The premiums increase with your age. It is the best choice for people who plan to keep the policy for a short term It is the same thing as term life insurance Whole life insurance, or whole of life assurance (in the Commonwealth of Nations), sometimes called 'straight life' or 'ordinary life,' is a life insurance policy which is guaranteed to remain in force for the insured's entire lifetime, provided required premiums are paid, or to the maturity date. As a life insurance policy it represents a contract between the insured and insurer that as long. Equity-indexed universal life insurance, like all universal life insurance, builds a cash value that the insured can borrow against, invest with and use to cover increases in the cost of insurance.
13. Which statement is correct about whole life insurance? A. Whole life insurance is cheaper than term life. B. Policy holders overpay in the later years of the policy. C. Whole life premiums increase with your age. D. Whole life insurance is the best choice for most people. E. true _____ is a life insurance policy that offers the same guarantees as traditional whole life insurance with a lower initial premium that remains level for the first five years of the policy: modified life: Charles and Rick have started up an electronics business. Their business is young and their cash flow is tight. C) Whole life *When an insured is covered by group life and loses their job, a 31-day period is given to convert to an individual whole life policy, without a physical exam, so long as they have been insured by the group for at least five (5) years prior to the date they lose their coverage.
All of the following statements concerning whole life insurance are correct EXCEPT: a. Whole life insurance provides for the payment of the policy face amount upon the death of the insured, regardless of when death occurs. b. 3. All of these statements about Equity Indexed Life Insurance are correct, EXCEPT: Cash value has a minimum rate of accumulation. If the gain on the index goes beyond the policy's minimum rate of return, the cash value will mirror that of the index. The premiums can be lowered or raised, based on investment performance.
Whole life insurance is by definition a long-term purchase and the guaranteed return on this type of policy provides little inflation protection. However, a partial hedge against inflation is... J chooses a monthly premium payment mode on his Whole Life insurance policy. Which of these statements is correct?-The gross premium is higher on a monthly payment mode as compared to being paid annually -The gross premium is lower on a monthly payment mode as compared to being paid annually-The cash value from a life policy paid on a monthly.
Which of the following statements about whole life insurance cash values is (are) true? I. Cash values are a result of the level premium method of purchasing life insurance. II. The cash value of a whole life policy eventually grows to equal the face value of the policy. Which statement about a whole life policy is correct? Beneficiary may be changed only with the consent of the premium payor Death benefit can usually be adjusted Cash value may be borrowed against Premiums are flexible. Cash value may be borrowed against. K is looking to purchase Renewable Term insurance.
Viatication: The selling of a life insurance policy by a terminally ill person, so that person can receive a benefit from the policy while still alive and the purchaser of the policy can receive a. A statement made by an insured in an insurance application that must be true to the best of one's knowledge and which becomes a part of the contract is known as a representation 9
Whole Life. Which of these is an element of a Variable Life policy? A fixed, level premium. Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies? Policyowner. A Limited-Pay Life policy has. premium payments limited to a specified number of years. Which statement about a whole life policy is correct? Cash value may be. Which statement is not true about life insurance companies? A.. A life insurance company needs more liquidity when selling a high proportion of: A. whole life policies. B. annuities. C.. A level-premium, whole life policy is a combination of. A. an annuity and a pension. B.
Whole of life insurance is generally more expensive for it covers you whenever you might die. However, there are cheaper such policies when the insured is elderly. Group insurance is designed for cover of a group with certain characteristics in common. Company insurance does allow for the fact that some members will - ProProfs Discuss Whole life insurance is a type of permanent life insurance and has a cash value component that builds value over time from interest. A portion of your payments each year goes into this cash.
Whole life premiums increase with your age. D. Whole life insurance is the best choice for most people. s. Whole life insurance builds up cash value is correct about whole life insurance. Log in for more information. Question. Asked 6/15/2013 3:27:18 PM. Updated 6/17/2016 10:56:55 PM. Cash Value and Whole Life Insurance . Whole life insurance is unique in that part of your premium goes into a tax-deferred savings portion known as the policy’s “cash value.” This amount is usually guaranteed to grow over time at a minimum rate of return—perhaps around 3%-4% overall–without going down. 10. With traditional life insurance products, the allocation to policyowners in the form of dividends _____ I. Is not directly linked to the life company’s investment performance -FALSE II. Has already been smoothened by the life company -TRUE III. Does not have the highs and lows of investment returns as in good investment years of life.
All of the following statements about life insurance benefits are correct EXCEPT: (A) benefits designated for a named beneficiary are protected from the insured's creditors (B) benefits payable to the insured's estate are protected from the insured's creditors D. Whole life insurance was derived from Universal variable life insurance Correct answer is B Variable life is a whole life product and was developed from the whole life design with the added feature of investment of cash value in separate accounts.
Which of the following statements about universal life insurance is (are) true? I. The interest rate credited to the cash value at the time the policy is issued remains fixed for the life of the policy. II. A monthly deduction is made from the policys cash value for the cost of insurance protection. All of the following statements about current assumption whole life insurance are true EXCEPT. A) It is a form of participating whole life insurance that pays annual dividends. B) An accumulation account is credited with an interest rate based on present market conditions and company experience.
4) Which statement is correct about whole life insurance? ( 2 points ) A. It is cheaper than term life. B. It builds up cash value. C. The premiums increase with your age. D. It is the best choice for most people. E. It is the same thing as term life insurance. 5) Your annual income is $100,000. You have a spouse, two kids, a dog and a mortgage - a typical family. In comparing the purchase of individual life insurance to group life, which statement is NOT true? A) Group life tends to have a lower premium per person than individual life. B) Both types of coverage provide a tax-free death benefit. C) Group insurance is automatic and requires less medical information than the individual coverage. The most common type of permanent life insurance is called A) the whole life policy. B) term life policy. C) universal life. D) modified life. Answer: A Difficulty: Med LO: 3 Page: 391 177. Which statement is correct about whole life insurance? A) Whole life insurance is cheaper than term life. B) Whole life insurance builds up cash value.
The initial premium for term insurance is lower than the initial premium for whole life insurance. Term life insurance is for a fixed period and the premium will be fixed. Whole of life insurance is the policy for whole life, and the premium may varies. 56) The difference between the legal reserve of a whole life policy and the face amount of insurance is the. A) cash value. B) net amount at risk. C) premium. D) dividend accumulations. 60) All of the following statements about employer-provided group life insurance are true EXCEPT