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MN Life, Accident and Health Insurance exam with complete solutions 2024
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MN Life, Accident and Health Insurance exam with complete solutions 2024
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MN Life, Accident and Health Insuranceexam with complete solutions 2024
Limited- jpayment jwhole jlife j- jANSWER✓✓--Allow jfor ja jlifetime jof jpremiums jto
jbe jpaid jin ja jshorter jperiod jof jtime
-10-pay jor j20-pay, jlife jpaid jup jat jage j65
Single jpremium jwhole jlife j- jANSWER✓✓--One jpayment jmade jat jthe jtime jof
jpurchase
-Creates jimmediate jcash jvalue
Modified jpremium jwhole jlife j- jANSWER✓✓--Lower jpremiums jduring jthe jfirst j3-
5 jyears
-After jthe jinitial jperiod, jpremiums jincrease
Graded jpremium jwhole jlife jpolicies j- jANSWER✓✓--The jgraded jpremium jstarts
jout jlower jthan jother jtypes jand jincreases jevery jyear jfor jfive jto jten jyears juntil
jleveling joff
Indeterminate jpremium jwhole jlife jinsurance j- jANSWER✓✓--Company jwill jadjust
jthe jpremium jaccordingly jbut jnever jabove jthe jmaximum jguaranteed jpremium
Interest jsensitive jwhole jlife jinsurance j- jANSWER✓✓--Where jthe jcash jvalue jcan
jincrease jbeyond jthe jstated jguarantee jif jeconomic jconditions jwarrant
-Fixed, jlevel jdeath jbenefit
-Premium jschedule jfixed jin jregard jto jthe jtiming jof jpayments
Continuous jpremium jwhole jlife j- jANSWER✓✓--The jpremiums jare jthe jsame
jeach jyear jfor jthe jduration jof jthe jcontract
-If jpolicyowner jdiscontinues jmaking jpremium jpayments, jthey jwill jreceive jthe
jcash jvalue jof jthe jpolicy
Universal jlife j- jANSWER✓✓--Designed jfor jpeople jwho jwant jflexible jpremiums
jand jflexible jcoverage jover jthe jcourse jof jtheir jlifetime
-Option jA: jlevel jdeath jbenefit jequal jto jthe jpolicy's jface jvalue
-Option jB: jIncreasing jdeath jbenefit jequal jto jthe jface jvalue jof jthe jpolicy jplus
jthe jcash jaccount
Variable jlife jinsurance jpolicies j- jANSWER✓✓--Separate jaccount jinstead jof
jguaranteed jcash jvalue
,-Death jbenefit jcan jincrease
-Has jguaranteed jdeath jbenefit
Variable juniversal jlife jpolicy j- jANSWER✓✓--No jguaranteed jdeath jbenefits
Advantages jto jvariable jlife j- jANSWER✓✓--Potential jfor jhigh jreturns
-Keep jpace jwith jinflation
-Tax jadvantages
Disadvantages jto jvariable jlife j- jANSWER✓✓--No jguaranteed jrate jof jreturns
-Complicated
-Highly jregulated
Equity-indexed juniversal jlife j- jANSWER✓✓--Permanent jlife jinsurance jpolicy
jthat jallows jpolicy jholders jto jtie jaccumulation jvalues jto jstock jmarket jindex
Level jterm j- jANSWER✓✓--Death jbenefit jis jlevel
-Premium jis jlevel jfor jthe jterm
Decreasing jterm j- jANSWER✓✓--Death jbenefits jdecreases
-Premium jremains jlevel
Increasing jterm j- jANSWER✓✓--Death jbenefit jincreases
-Premium jincreases
Return jof jpremium jterm j- jANSWER✓✓--Premium jhigher jthan jregular jterm
jpolicy
-Premium jpaid jby jinsured jis jpaid jback jif jinsured jalive jat jthe jend jof jthe jterm
Annually jrenewability j- jANSWER✓✓--Guarantees jthat jthe jpolicy jwill jrenew jat
jthe jend jof jthe jterm
Joint jlife jpolicy j- jANSWER✓✓--Covers jtwo jor jmore jlives jwith jthe jdeath jbenefit
jbeing jpaid jwhen jthe jfirst jinsured jdies
-First jto jdie jpolicy
Survivorship jlife jpolicy j- jANSWER✓✓--Insures jtwo jindividuals jand jwill jpay jthe
jdeath jbenefit jwhen jthe jlast jinsured jdies
-Second jto jdie jpolicy jor jlast jto jdie jpolicy
Juvenile jlife jinsurance j- jANSWER✓✓--Coverage jwritten jon jthe jlife jof ja jchild jor
ja jminor
-Provides jthe jbenefit jof jlocking jin jthe jlow jpremium jfor jthe jchild's jentire jlife
, Jumping jjuvenile jlife jinsurance j- jANSWER✓✓--The jface jamount jof jsome
jjuvenile jpolicies jautomatically jincreases jwhen jthe jchild jreaches jage j18 jor j21
jwith jno jpremium jincrease
Renewable jterm j- jANSWER✓✓--No jnew japplication jis jrequired
-New jpremium jbased jupon jattained jage
Convertible jterm j- jANSWER✓✓--Can jbe jchanged jto jpermanent jinsurance
-No jnew japplication jrequired
-Low jinitial jcost
-Coverage jfor ja jshort jperiod jof jtime
Single jpremium j- jANSWER✓✓--Pays jmonthly jincome jimmediately
Flexible jpremium j- jANSWER✓✓--Frequency jof jpremium
Immediate jannuity j- jANSWER✓✓--Purchased jwith ja jsingle jpremium j(SPIA)
-Has jno jor jshort jaccumulation jperiod
-Income jpayments jbegin jwithin jone jmonth jafter jpurchase
Deferred jannuity j- jANSWER✓✓--Bought jwith ja jsingle jpremium j(SPDA)
-Flexible jpremiums j(FPDA)
-Has jan jaccumulation jperiod
-Owner jdecides jannuitization jat ja jlater jtime
Fixed jannuities j- jANSWER✓✓--Values jare jguaranteed jagainst jloss
-General jaccount
-Long jterm jlow jrisk jinvestments
-If jannuitized-fixed jincome jpayments
-Money jguaranteed jby jcompany
Variable jannuities j- jANSWER✓✓--Separate jaccount
-No jguarantees jby jcompany-owner jassumes jrisk
-Premium jbuys jaccumulation junits
-If jannuitized, jaccumulated jmoney jbuys jannuity junits
-Value jcan jgo jup jor jdown
-Must jbe jlicensed jby jthe jstate jand jsecurity jregulators j(SEC j& jFINRA)
Indexed jannuities j- jANSWER✓✓--Are jfixed jannuities
-Value jis jguaranteed jby jcompany
-Interest jearned jcan jgo jup jor jdown jlike jthe jstock jmarket
-Interest jtied jto jstock jmarket jindex j(S&P j500)
-No jsecurities jlicense jrequired
Accumulation jperiod j- jANSWER✓✓--Paying jin jmoney
-Interest jgrows jtax jdeferred
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