1. a. Briefly explain two basic characteristics of ordinary life policies.

b. What are two limitation of ordinary life insurance?

c. Describe two basic characteristics of variable life insurance.

d. Explain two basic characteristics of universal life policies.

e. Explain two limitations of universal life insurance.

2. Your friend has asked you to explain to her the difference between term and whole life insurance. Provide three statements to best describe the key features of each:

A. Term Life insurance

B. Whole Life insurance

3. Provide two examples of people who should be each of the following:

A. Term Life insurance

B. Whole Life insurance

4. What are the disadvantages of each of the following:

A. Term Life insurance

B. Whole Life insurance

5. Briefly explain the key features of following life insurance contractual provisions.

a. Suicide clause

b. Grace period

c. Reinstatement clause

6. All states have non-forfeiture laws that require the payment of a cash-surrender value when a cash-value policy is surrendered. Briefly explain the following non-forfeiture options that are found in a typical life insurance policy.

a. Cash-value option

b. Reduced paid-up insurance

c. Extended term

7. Additional riders and benefits often can be added to a life insurance policy to provide greater protection to the insured. Describe each of the following riders and options:

a. Waiver-of-premium provision

b. Guaranteed purchase option

c. Double indemnity rider

d. Cost-of-living rider

e. Accelerated benefits rider