"Back to Part 1" 1. Which of the following statements describing
whole life insurance are correct? I. The face amount of the
policy stays the same as long as the policy remains in force.
II. The shorter a premium period is, the slower the cash value
will grow. III. The policys cash value decreases each year the
policy is in force. IV. Whole life insurance is designed to
mature at age 100. a) I and II only c) II and IV only b) I and
IV only d) I and III only 2. Which word best decribes to whom
the policys cash values belong? a) policyowner c) beneficiary b)
insured d) insurer 3. All of the following statements regarding
basic forms of whole life insurance are correct, except: a)
Generally, straight life premiums are payable, at least
annually, for the duration of the insureds life. b) The owner of
a 30 - pay life policy will owe no more premiums after the 30th
year the policy is in force. c) Limited payment life provides
protection only for the years during which premiums are paid. d)
A single premium life pol