Types of Policies
Which premium characteristic defines traditional straight ordinary whole life insurance?
Answer and explanation
Answer: B. Ordinary whole life (straight life) requires level premium payments for the lifetime of the insured or until policy maturity.Source: NAIC Whole Life Insurance Guide — PDF page 4, Premiums
More types of policies questions
- Why is the premium for a $1,000,000 survivorship life policy lower than for a $1,000,000 joint first-to-die policy on the same two lives?
- A 20-year level term policy allows conversion only during the first 10 policy years and renewal only until age 65. In policy year 9 the insured wants permanent coverage without risking later evidence-of-insurability problems. Which advice best protects the contractual right?
- A 20-year term policy allows conversion only during its first 12 years. What happens to the conversion privilege after year 12?
- A 20-year term policy permits conversion only during its first 12 years. Which statement correctly describes the feature?
- A 45-year-old buys an annuity intending to take income at 65. Which annuity classification describes the contract during those twenty years?
- A buyer wants a deferred annuity funded entirely with one lump-sum purchase payment. Which funding form should be selected?
590 Texas questions like this one.
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