Options

If used, this nonforfeiture option does not allow the policyowner to reinstate the original policy:

Cash surrender value

What nonforfeiture option allows the policyowner to receive the policy's cash value?

Cash surrender value

If the policy owner cannot be reached, premium payments have ceased, and the policy's _____value is eliminated, the insurer will automatically use the _____ term option.

Cash, extended

If the policy owner cannot be reached, premium payments have ceased, and the policy's______ value is eliminated, the insurer will use the ______ term option.

Cash, extended

Accumulate at interest is a:

Dividend option

Reduction of premium payment is a:

Dividend option

Accumulation at Interest is what?

Dividend option in which the insurer retains the dividend to be invested.

If the policy owner does not inform the insurer how they would like to receive the _________, the insurer will automatically use the paid-up additions option.

Dividend, paid-up

Life insurance policies that pay dividends are referred to as "participating policies". Participating policies pay dividends to policyholders. What else is a true statement about dividends? (3)

Dividends are not taxable, are usually paid once a year, and are really a return of overcharged premiums.

Rick can use his ______ to purchase paid-up additions, without adding significantly to his costs. This option fulfills his need for ______ coverage in the coming years as he starts his family.

Dividends, increased

When the extended term option is used, the face amount is:

Equal to the original coverage

The automatic nonforfeiture option is:

Extended term

What nonforfeiture option permits the policyowner to use the cash values to purchase paid-up term life insurance coverage?

Extended term

Which nonforfeiture option is the "automatic" option?

Extended term

The ___________________________ nonforfeiture options allow the policy owner to reinstate the original policy because coverage is still in effect.

Extended term and reduced paid-up

When Clarice exchanges her Whole life policy for an ________ term policy the amount of term insurance is equal to the ________policy amount.

Extended, original

Nonforfeiture options/values are _____ that are required by law to be part of life insurance policies that build ______value

Guarantees, cash

The paid-up additions option allows the policy owner to use the dividend as a single ______ to purchase an additional amount of ________-life coverage.

Premium, whole

Marie wants a year of extra term life insurance protection valued at $10,000. How should she use her dividend?

Purchase a one-year term

Charlotte decides to exercise a nonforfeiture option. Which option is not available to her?

Reduce premium payment

Any outstanding policy loans plus interest would be deducted from the cash surrender value prior to purchasing reduced paid-up insurance. The following Is regarding what?

Reduced paid-up

The ________________ insurance option allows the policy owner to purchase paid-up whole-life coverage at a reduced face amount based on the amount of the policy cash value.

Reduced paid-up

What nonforfeiture option allows the policyowner to purchase paid-up whole life coverage at a reduced face amount based on the policy's existing cash value?

Reduced paid-up

Which nonforfeiture option allows the policyowner to purchase paid-up whole-life coverage at a reduced face amount based on the amount of the policy cash value?

Reduced paid-up

With the ______________ insurance option, the policy may be reinstated to the original face amount within the terms of the reinstatement provision.

Reduced paid-up

Jenny has a rated whole life insurance policy. Which nonforfeiture option(s) may she select?

Reduced paid-up or cash surrender

The following is an example of what dividend option?: the dividend is used to offset the cost of a future premium payment.

Reduction of Premium Payments

Which dividend option allows the policyowner to use the dividend to offset the cost of a future premium payment?

Reduction of premium payments

The attained age of the policy holder determines the rate when additional insurance is purchased. The date of the policy and the existence of other _______ is not ______to determining the rate.

Relevant, riders

Some policies offer the policyholder the opportunity to purchase additional insurance when they get married, or have children. What is the factor that determines the rate of the additional coverage?

The attained age

Mr. Johnson has decided to surrender his whole life policy, and has chosen the reduced paid-up nonforfeiture policy option. How will this decision affect the cash value of his new policy?

The cash value will continue to increase and the face value of the policy, however, will be reduced.

The reduced paid-up insurance option allows the policy owner to purchase paid-up _________ life coverage at a _______ face amount based on the ________of the policy cash value.

Whole, reduced, amount

Life insurance policies that pay dividends are referred to as.......

"Participating Policies".

Cash payment is dividend option in which the policyholder receives:

A check for the amount of the dividend.

Eddie wants to use a nonforfeiture option. What may Eddie not use?

Accumulation at interest is a dividend option.

Dividends can be used to buy ______ insurance, accumulate, and apply towards next year's _________. They _______ be applied to overdue premiums from previous years.

Additional, premiums, cannot

Dividends __________ taxable, are usually paid ________ a year, and are really a return of _____________ premiums.

Aren't, once, overcharged

Which life insurance dividend option does not increase a policy's cash value?

Cash payment

With the __________________ option, the policyholder is sent a check for the amount of the dividend, which does not increase the policy's cash value.

Cash payment

The ________________ option does not allow the policy to be reinstated because the policy has been forfeited for its cash value and no coverage remains.

Cash surrender

The nonforfeiture provision protects a policy owner from losing all of their _______ in the event a policy is canceled, surrendered, or _______ are not paid.

Investment, premiums

When a life insurance policy premiums are not paid and the grace period has _______, the extended term and ___________ paid-up insurance nonforfeiture options _____ coverage to continue.

Lapsed, reduced, allow

Reduced paid-up insurance is a:

Nonforfeiture option

Which is a guarantee that is required by law to be a part of life insurance polices that build cash value?

Nonforfeiture option

Which provisions allow a life insurance policy to continue beyond the grace period when a premium is overdue and not paid?

Nonforfeiture option

Which provisions allows a life insurance policy to continue beyond the grace period when a premium is overdue and not paid?

Nonforfeiture option

Life insurance policies that build cash value have certain guarantees, required by law, if the policyholders discontinue payment of premiums. The provision to access the cash value of the policy is called the:

Nonforfeiture provision

Jenny has a rated policy, but her insurer will not offer her the extended-term_ _________________ option. She may choose the _______ paid-up or cash options.

Nonforfeiture, reduced

Dividends are ____ taxable, are usually paid once a year, and are really a return of______ premiums.

Not, overcharged

Dividends left to accumulate at interest are ______ part of the policy's cash ______.

Not, value

The following is an example of what dividend option?: the policyowner uses the dividend as a single premium to purchase an additional amount of whole life coverage. This dividend option increases the face amount of the policy.

Paid up additions

The __________________ dividend option uses the dividend as a single premium to purchase paid-up whole-life coverage

Paid-up additions

The automatic dividend option is:

Paid-up additions

This dividend option provides additional permanent coverage:

Paid-up additions

Which dividend option allows the policyowner to use the dividend as a single premium to purchase additional face amounts of permanent coverage?

Paid-up additions

The cash value acts as a single premium to purchase the extended term coverage, and the amount of the ________ coverage is equivalent to the _______ policy's face value.

Paid-up, original

Participating policies pay dividends to ...

Policyholders.

The cash surrender value allows the ______ to receive the policy's ____ value

Policyowner, cash

The reduction of premium payments option allows the _______ to use the dividend to offset the ____ of a future premium payment.

Policyowner, cost

The extended term option permits the _______ to use the policy's cash values to buy _______ term insurance.

Policyowner, paid-up