The Individual Life Insurance Contract Quizzes
Which of the following statements about a suicide clause in a life insurance policy is true?
Suicide is excluded for a specific period of years and covered thereafter
Which is true about the cash surrender nonforfeiture option?
Funds exceeding the premium paid are taxable as ordinary income
What allows the policy holder to apply policy dividends towards the next year's premium
Reduction of Premium Option
What is true about nonforfeiture values?
Required by state law to be included in the policy
Which of the following is true regarding a single life settlement option?
it provides income the beneficiary cannot outlive
When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to
purchase a single premium policy for a reduced face amount
Which nonforfeiture option provides coverage for the longest period of time
Reduced paid-up