Life of policy provisions, riders and options

What is NOT true regarding the guaranteed insurability rider?

This rider is available to all insureds with no additional premium

The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose?

Interest only option

What is the purpose of a fixed-period settlement option?

To provide a guaranteed income for a certain amount of time

If an insured withdraws a portion of the face amount in the form of accelerated benefits because of a terminal illness, how will that affect the payable death benefit from the policy?

death benefit will be smaller

What is NOT true concerning dividends?

dividend amounts are guaranteed in the policy

What is the waiting period on a Waiver of Premium rider in life insurance policies?

6 months

Which policy component contains the company's promise to pay?

Insuring clause

The provision which states that both the policy and a copy of the application form the contract between the policyowner and insurer is called the

entire contract

What is the purpose of a free-look period in insurance policies?

it allows the insured to reject the policy with a full refund

When may an insurance company use suicide as a defense against paying a death claim?

when death occurs within a specified period of time after the policy was issued

What is NOT true regarding insurance policy loans?

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

what allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?

Payor benefit

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

it has the highest form of insurance protection

Which is true regarding the suicide clause in a life insurance policy?

suicide is excluded for a specific period of years and then covered thereafter

What is included in the consideration clause of a life insurance policy?

the amount of premium payment

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