Management Notes

Management Notes

Reference Notes for Management

J is issued a Life insurance policy

J is issued a Life insurance policy with a death benefit of $100,000. She pays $600 per year in premium for the first 5 years. The premium then increases to $900 per year in the sixth year, and remains level thereafter. The policy’s death benefit also remains at $100,000. Which type of Life insurance policy is this?

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J is issued a Life insurance policy with a death benefit of $100,000. She pays $600 per year in premium for the first 5 years. The premium then increases to $900 per year in the sixth year, and remains level thereafter. The policy's death benefit also remains at $100,000. Which type of Life insurance policy is this?

J is issued a Life insurance policy with a death benefit of $100,000. She pays $600 per year in premium for the first 5 years. The premium then increases to $900 per year in the sixth year, and remains level thereafter. The policy’s death benefit also remains at $100,000. Which type of Life insurance policy is this?

 Options:

a) Endowment
b) Graded Premium Life
c) Straight Life
d) Modified Premium Life

The Correct Answer Is:

d) Modified Premium Life

J is issued a Life insurance policy with a death benefit of $100,000. She pays $600 per year in premium for the first 5 years. The premium then increases to $900 per year in the sixth year, and remains level thereafter. The policy's death benefit also remains at $100,000. Which type of Life insurance policy is this?

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