Life Provisions
A policyholder may generate taxable income from which the following dividend options
Accumulation of interest
Which of the following nonforeiture options offers the highest death benefit
Extended term
S would like to use dividends from her insurance policy to purchase paid up additions. all of these would be factors that determine how much coverage can be purchased except
beneficiary's age
t took out a 50,000 life insurance policy with an accidental death and dismemberment rider. five years later, t commits audi use. How much will the insurer pay
50,000. suicide is 1-2 years
S has a whole life policy with a premium payment due soon. which provision would keep the policy in force if S does not make the payment and the policy has adequate cash value from which the premium payment can be made
Automatic policy loan
A while life insurance policy owner does Not have the right to
Change the grace period
N is covered by a Term Life policy and does not make the required premium payment which was due August 1. N dies September 15. What action will the insurer take?
Claim will be denied
Prevents an insurer from changing the terms of the contract with the policy owner by referring documents not found within the policy itself
Entire contract provision
The purpose of the ___ period clause is to avoid unintentional lapse of a life insurance policy
Grace
In a life insurance contract, an insurance company's promise to pay stated benefits is called the
Insuring Clause
in a life insurance policy, which provision states who may select policy options, designated and name a beneficiary and be the recipient of any financial benefit from the policy
Owners rights
P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to a disability?
P will still receive declared dividends
s buys a 10,000 whole life policy and pays an annual premium of 100 s does 5 years later and the insurer pays the beneficiary 10500. what kind of rider is S
Return of premium rider
Which of the following statements about accumulated interest earned on dividends from an insurance policy is true
Taxed as ordinarily income
Contains monthly morality change as well as self directed investment choices
Variable universal life
Dividends paid from a life insurance policy are
issued by the insurer
which of these is not considered to be a right given to a policy owner
modify a provision in the insurance contract
Which life insurance rider typically appears on a juvenile life insurance policy
payor benefit rider
What is the Suicide provision designed to do?
safeguard the insurer from an applicant who is contemplating suicide
Typically a life insurance death benefit is paid by a lump-sum payment. A(n) __________ option is a method of distributing a Life Insurance policy's death benefit OTHER than by a lump sum payment.
settlement