Primerica - Life Insurance Policy Provisions, Options & Riders (AZ)

Who has the legal title of the property in a trust? A - Beneficiary B - Guardian C - Trustee D - Grantor

C - Trustee The person who receives the legal title of the property to be used for the benefit of the trust beneficiary is called the "trustee".

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? A - Interest only option B - Life income with period certain C - Joint and survivor D - Fixed amount option

A - Interest only option With the interest-only option, the insurance company retains the policy proceeds and pays interest on the proceeds to the recipient (beneficiary) at regular intervals.

Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary? A - Fixed-amount B - Life income with period certain C - Joint and survivor D - Single life

B - Life income with period certain The life income with period certain option guarantees payments for the life of the recipient and also specifies a guaranteed period of continued payments. If the recipient should die during this period, the payments would continue to a designated beneficiary for the remainder of the period.

All of the following are true regarding the guaranteed insurability rider EXCEPT A - The insured may purchase additional insurance up to the amount specified in the base policy. B - It allows the insured to purchase additional amounts of insurance without proving insurability only at specified dates or events. C - This rider is available to all insureds with no additional premium. D - The insured may purchase additional coverage at the attained age.

C - This rider is available to all insureds with no additional premium. The guaranteed insurability rider may be structured to allow for specific additional amounts of insurance to be purchased at specific ages, dates and events without proving insurability; however, the coverage is purchased at the insured's attained age and the maximum allowable purchase is specified in the base policy. This rider usually expires at the insured's age 40.

When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to A - Purchase a term rider to attach to the policy. B - Pay back all premiums owed plus interest. C - Receive payments for a fixed amount. D - Purchase a single premium policy for a reduced face amount.

D - Purchase a single premium policy for a reduced face amount. When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used by the insurer as a single premium to purchase a completely paid up permanent policy that has a reduced face amount from that of the former policy.