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TN Life and Health Insurance Exam Questions and Answers
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TN Life and Health Insurance Exam Questions and Answers
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TN Life and Health Insurance Exam Questions andAnswers
term - ANSWER period of time
term life insurance - ANSWER life insurance policy that provides temporary
coverage
term life insurance - ANSWER least expensive, cheap, or very low premium life
insurance policy
face amount/face value - ANSWER the amount paid to the beneficiary at the
insured's death
on the 1st page of the policy/contract - ANSWER where is the face value for a policy
listed?
group life insurance - ANSWER term life insurance that employer provides to
employees; usually $10,000
$50,000 - ANSWER what is the maximum amount the employer can provide to an
employee without you paying tax?
D - ANSWER How much of the group life of $75,000 would be taxable to the
beneficiary?
A. $25,000
B. $75,000
C. $50,000
D. none
renewable - ANSWER right of the policyholder to renew the policy at the end of the
term
convertible - ANSWER right of the policyholder to change their temporary/term
coverage to whole life/permanent protection
B - ANSWER You may convert your group life at termination of employment to?
A. term
B. whole life
C. either a or b
D. none of these
level term - ANSWER the face amount and the premium stay the same for the policy
period or term
decreasing term - ANSWER the face amount decreases for the life of the policy
down to zero at the end of the term or expiration date of the contract
,credit life - ANSWER pays off the balance of a loan at insured's death
increasing term - ANSWER the face amount increases for the life of the policy; starts
at zero/no value; not sold very often
return of premium - ANSWER a rider that at death pays an additional amount of
money equal to all premiums paid up to your time of death
annually renewable - ANSWER expires each year, but is renewable for another year;
premium increases each year
whole life - ANSWER life insurance policy that covers the whole of life or to age 100
continuous pay - ANSWER pay the same premium until age 100 when the policy
pays off to owner
limited pay - ANSWER premium is paid up before age 100; higher premium and
higher cash value
single pay - ANSWER premium is paid up in one payment
20 Pay Life - ANSWER premium is paid up in 20 yrs
Life Paid Up at 65 - ANSWER premium paid up at age 65
modified whole life - ANSWER premium begins very low (term) and changes to
whole life with one raise in premium after 3-5 years then premium is constant for life
of policy
graded premium whole life - ANSWER premium begins very low (term) and raises
each year for 5-10 years then premium is constant for life of policy
endowment - ANSWER policy matures before age 100 at a specific age or date;
higher premium and cash value
pure endowment - ANSWER endowment that will pay off only if the insured lives to
maturity
adjustable life insurance - ANSWER allows the insured to adjust the premium, face
amount, and term
universal life insurance - ANSWER policy where most all of the premium is invested
in a cash value account earning competitive current interest rates and the rest of the
premium buys term for the face amount needed
variable life insurance - ANSWER insurance company invests premium in stock
market; hedge against inflation
, scheduled premium variable life - ANSWER the amount being paid and the dates of
payment are known; minimum death payment; can borrow 75-90% of cash value
flexible premium variable life - ANSWER the amount of premium to be paid and the
payment date are both unknown; no guaranteed cash value/death benefit; owner
cannot borrow on this policy
variable universal life insurance - ANSWER the insured directs the insurance
company exactly where to invest their premiums; requires a lot of investing
experience
interest-sensitive whole life insurance - ANSWER premium and cash value amounts
may change based on insurer's experience; minimum guaranteed rate of return and
minimum cash values
annuity - ANSWER designed to liquidate a sum of money; guarantees a lifetime
income to the recipient
fixed annuity - ANSWER annuity that guarantees the principal, interest, and the
amount of the payment
variable annuity - ANSWER premium is invested in stocks, so the annuity is not fully
guaranteed
equity index annuity - ANSWER annuity that provides higher interest while protecting
principal
immediate annuity payment - ANSWER payments start within a year
deferred annuity payment - ANSWER payment starts later than a year or more
level premium payment - ANSWER same payments over a period of time to fund
annuity
flexible premium payment - ANSWER annuity payment frequency and amount are
flexible
single premium payment - ANSWER annuity payment that is one lump sum payment
family income policy - ANSWER whole life and decreasing term on the bread winner
provided to surviving family
family maintenance policy - ANSWER whole life and level term on the income
benefits on the bread winner provided to surviving family
family policy - ANSWER coverage on all members of the family that gives bread
winner whole life, spouse term up to 65, and children term up to 18
joint life policy - ANSWER two insured (husband and wife), policy pays off at the
death of the 1st insured, pays to surviving spouse
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