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Which of the following types of policies is most likely to allow you to switch i

ID: 2677136 • Letter: W

Question

Which of the following types of policies is most likely to allow you to switch investments?
Limited pay life
Whole life
Variable life
Term life
Adjustable whole life

The best way to handle risk is to:
avoid risk
assume risk
try to prevent losses
transfer risk to an insurance company
combination of these

Which is not a type of term insurance:
limited pay
decreasing
convertible
renewable
annual

A young couple have two small children. They are doing well financially but their life insurance needs are high and their budget is tight. What type of life insurance will give them the most protection for their money?
continuous premiums
universal life
paid up life
term life
variable life

You want to pay premiums for 20 years and have your insurance premium obligations finished at that time, but you feel you will need life insurance the rest of your life. What insurance should you choose?
continued premium
limited pay
single premium
universal

Which of the following policy features allow the insured to increase coverage periodically without showing proof of insurability?
multiple indemnity clause
guaranteed purchase options
disability clause
paid-up insurance option
extended-term option

(blank) and (blank) are both relatively expensive types of decreasing-term life insurance.
Group; credit
credit; mortgage
mortgage; industrial
industrial; special-purpose policies
special purpose; group

Explanation / Answer

Which of the following types of policies is most likely to allow you to switch investments?
Limited pay life
Whole life
Variable life
Term life
Adjustable whole life

The best way to handle risk is to:
avoid risk
assume risk
try to prevent losses
transfer risk to an insurance company
combination of these

Which is not a type of term insurance:
limited pay
decreasing
convertible
renewable
annual

A young couple have two small children. They are doing well financially but their life insurance needs are high and their budget is tight. What type of life insurance will give them the most protection for their money?
continuous premiums
universal life
paid up life
term life
variable life

You want to pay premiums for 20 years and have your insurance premium obligations finished at that time, but you feel you will need life insurance the rest of your life. What insurance should you choose?
continued premium
limited pay
single premium
universal

Which of the following policy features allow the insured to increase coverage periodically without showing proof of insurability?
multiple indemnity clause
guaranteed purchase options
disability clause
paid-up insurance option
extended-term option

(blank) and (blank) are both relatively expensive types of decreasing-term life insurance.
Group; credit
credit; mortgage
mortgage; industrial
industrial; special-purpose policies
special purpose; group

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