#1
Which type of life insurance provides coverage for a specific period?
Whole life insurance
Term life insurance
Universal life insurance
Variable life insurance
#2
What is the primary benefit of whole life insurance?
Coverage for a specific term
Flexible premiums
Lifetime coverage
Investment opportunities
#3
What distinguishes variable life insurance from other types?
Premiums are not fixed
Death benefit varies based on investment performance
No cash value component
No medical examination required
#4
In universal life insurance, what is the main characteristic of the cash value component?
Guaranteed to increase over time
Can be withdrawn or borrowed against
Locked for the duration of the policy
Only available after policy maturity
#5
What is the main advantage of term life insurance over whole life insurance?
Lower premiums
Lifetime coverage
Cash value accumulation
Fixed premiums
#6
Which of the following is a characteristic of a renewable term life insurance policy?
Coverage for a specific term
Can be converted to a whole life policy
Premiums increase with age
Provides lifetime coverage
#7
What is the main characteristic of a participating whole life insurance policy?
Offers fixed premiums
Allows policyholders to participate in company profits
Provides coverage for a specific term
Does not have a cash value component
#8
Which of the following is a feature of an adjustable life insurance policy?
Offers fixed premiums
Provides lifetime coverage
Allows policyholders to change coverage amounts and premium payments
Does not have a cash value component
#9
Which of the following statements best describes term life insurance?
Provides coverage until the policyholder's death
Offers lifetime coverage with flexible premiums
Builds cash value over time
Provides coverage for a specific period
#10
What feature of universal life insurance allows policyholders to adjust their premiums and death benefits?
Cash value component
Fixed premiums
Flexible premiums and coverage
Guaranteed minimum death benefit
#11
Which type of life insurance offers the potential for higher returns but also involves investment risks?
Whole life insurance
Term life insurance
Variable life insurance
Universal life insurance
#12
What is the primary purpose of the cash value component in permanent life insurance policies?
To provide investment opportunities
To increase the death benefit
To fund the policy's administrative costs
To offer policy loans and withdrawals
#13
What is a characteristic of a variable universal life insurance policy?
Fixed premiums and death benefit
Guaranteed cash value accumulation
Policyholder's ability to invest premiums in various accounts
No investment component
#14
Which type of life insurance offers the most flexibility in premium payments?
Whole life insurance
Term life insurance
Variable life insurance
Universal life insurance