4. A policy which pays the face amount of the policy if the insured dies and also pays the face amount if the insured survives the policy term is called:

1. a whole life policy
2. a universal life policy
3. an endowment policy
4. a term life policy

5. When Kathy buys a single premium whole life policy:

1. she makes the same premium payment each year of the policy period.
2. she pays the entire premium in a lump sum when the policy is issued and is then covered for her whole life
3. she makes the same premium payment each year for a limited number of years and is then covered for her whole life.
4. she makes the same premium payment each year for her whole life and is covered for her whole life.

6. Which of the following will increase the implicit return on life insurance savings?

1. lower lapse rates for the insurer
2. policyholder drops the policy early
3. insurer has high expense loading
4. none of the above