Chapter 3 pre license

The insured's premiums will be waived until she is 21

A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums

An insured receives an annual life insurance dividend check. What term best describes this arrangement?

Cash option

One-Year Term Option

Dividend option in which the policyowner uses the dividend as a single premium to purchase one-year term protection.

A father purchases a life insurance policy on his teenage daughter and adds the Payor Benefit rider. In which of the following scenarios will the rider waive the payment of premium

If the father is disabled for more than 6 months

Which of the following statements is TRUE concerning the Accidental Death Rider

It will pay double or triple the face amount

Income for 2 or more recipients until they die

Life income joint and survivor settlement option guarantees

$50,000

An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?

$200,000

An insured purchased a 15-year level term insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. the insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. what amount would his beneficiary receive as a settlement

Term

Children's riders attached to whole life policies are usually issued as what type of insurance

Which rider, when attached to a permanent life insurance policy, provides an amount of insurance on every family member?

Family term rider

It has the highest amount of insurance protection

What is the benefit of choosing extended term as a nonforfeiture option?

The insured's estate

The sole beneficiary of a life insurance policy dies before the insured. If the policyowner fails to change the beneficiary before the insured's death, the proceeds of the policy will go to

Grace Period

What provision in an insurance policy extends coverage beyond the premium due date

Increasing Term

What type of insurance would be used for a Return of Premiun rider

The amount of premium payment

Which of the following information will be stated in the consideration clause of a life insurance policy?