EXAm FX Life Policy Provision, Riders and Options 4-24-19

Guaranteed insurability

At the time the insured purchased her life insurance policy, she added a rider that will allow her to purchase additional insurance in the future without having to prove insurability. This rider is called

Joint and Survivor

The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called

Policy loans can be made on policies that do not accumulate cash value.

All of the following are true regarding insurance policy loans EXCEPT A. The amount of the outstanding loan and interest will be deducted from the policy proceeds when the insured dies. B. The policy will terminate if the loans plus interest equals or exceeds the cash value of the policy. C. Policyowners can borrow up the full amount of their whole life policy's cash value. D. Policy loans can be made on policies that do not accumulate cash value.

Common Disaster

An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had what provision?

Reduction of Premium

An insured pays $1,200 annually for her life insurance premium. The insured applies this year's $300 worth of accumulated dividend to the next year's premium, this reducing it to $900. What option does this describe?

Fixed Period

If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select?

Guaranteed insurability rider

If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a

Waiver of Premium

The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called

It has the highest amount of insurance protection

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

Extended Term

Which nonforfeiture option has the highest amount of insurance protection?

Fixed Amount

when the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option?

It is reduced to the amount of what the cash value would buy as a single premium.

When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy?

The can be changed only with the written consent of that beneficiary.

which of the following statement is TRUE concerning irrevocable beneficiaries?

It remains the same no matter how many children are added to the policy.

Which of the following is true about the premium on the children's rider in a life insurance policy?

It is term coverage that is convertible to permanent insurance at or prior to the child reaching the maximum coverage age.

Which of the following is true of a children's rider added to an insured's permanent life insurance policy?