Life Insurance Premiums, Proceeds and Beneficiaries

All of these settlement options would satisfy the conditions of a spendthrift clause, EXCEPT:

lump-sum payment

Life insurance premiums are based on what 3 factors?

mortality, interest and expenses

A woman is insured under a Variable Life insurance policy with her husband named as primary beneficiary. If there is no designated contingent beneficiary, who will receive the policy's proceeds if they both die in a common accident?

Policyowner's estate

what percent of personal life insurance premiums is usually deductible for federal income tax purposes?

0%

when there is a named beneficiary on a life insurance policy, the death benefits:

are paid directly to the beneficiary without interference from the insured creditors

which would be described as a beneficiary designation by class?

children of the insured

A policy owner's rights are limited under which beneficiary designation?

irrevocable

A level premium indicates what?

the premium is fixed for the entire duration of the contract

How long do most states allow and insurance company to delay the payment of cash surrender under the Delayed Payment provision?

6 months

which of these statements is incorrect regarding the federal income tax treatment of insurance?

entire cash surrender value is taxable

which of the following is considered a class beneficiary designation?

surviving children

the most important factor to consider when determining whether to convert term insurance at the insured attained age or the insured's original age is?

the cost

A preferred life insurance premium can be obtained by an applicant exhibiting all these factors EXCEPT:

Living in the mountains

which statement is true regarding a minor beneficiary?

Normally, a guardian is required to be appointed in the Beneficiary clause of the contract.

T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismemberment policy insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive?

$0

Which tax is normally associated with death?

Federal estate tax

K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true?

Proceeds will be paid to P's estate

T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary?

Request of change will be refused

Which statement regarding Change of Beneficiary provision is true?

The policy owner can change the beneficiary

D is the policyowner and insured for a $50,000 life insurance policy. The beneficiary is D's wife. D and his wife divorce and D remarries, transferring ownership of his policy to his new wife. If D dies without making any further changes, to whom will the policy proceeds be paid to?

ex-wife