Oklahoma Life Producer Practice Exam

Which life insurance policy type is designed for an increasing face amount as the insured reaches a certain age?

1. Term Life Insurance

2. Jumping Juvenile Policy

3. Whole Life Policy

4. Variable Life Insurance

The correct answer is: Jumping Juvenile Policy

The Jumping Juvenile Policy is specifically designed to provide a face amount that increases when the insured, typically a child, reaches a certain age, often around 21. This type of policy is initially issued at a lower face value, which will automatically increase at specified ages without requiring the insured to undergo any additional underwriting or prove insurability at those later ages. This policy is advantageous for families looking to secure life insurance for their children while also ensuring that the coverage grows as they get older. The increase in face amount can help cover expenses related to future needs like education or initial adulthood costs. Such a feature allows the policy to adapt to the individual's changing life circumstances and financial requirements. Term Life Insurance, on the other hand, does not have variations in face amount; it typically provides a fixed coverage for a specified term. Whole Life Policies offer a guaranteed face amount and cash value accumulation but do not automatically increase the face amount based on the age of the insured. Variable Life Insurance provides flexibility in premiums and investments but does not guarantee a rising face amount linked to age. Therefore, the option that clearly matches the description of an increasing face amount as the insured matures is the Jumping Juvenile Policy.