BUSINESS INSURANCE (WebCE) EXAM TUTORQUESTIONS AND ANSWERS A+ GRADED.
All the following statements about term life insurance are correct EXCEPT:
It offers protection for a specified, limited period.
A small cash value gradually accumulates while the policy is in force.
Upon issue, it is generally less expensive than permanent insurance of
comparable face amount.
It pays a benefit only if the insured dies during the specified period.
✔✔a small cash value gradually accumulates while the policy is in force
A type of life insurance that covers two people and pays the death benefit
only upon the second insured's death is called
survivorship life
family life
spousal life
joint life
✔✔survivorship life
Under a joint life insurance policy, when does the insurer pay the death
benefit?
when the first insured dies
only when the surviving insured dies
only when the older insured dies
only when the younger insured dies
✔✔when the first insured dies