The Individual Life Insurance Contract Quizzes

Which of the following statements about a suicide clause in a life insurance policy is true?

Suicide is excluded for a specific period of years and covered thereafter

Which is true about the cash surrender nonforfeiture option?

Funds exceeding the premium paid are taxable as ordinary income

What allows the policy holder to apply policy dividends towards the next year's premium

Reduction of Premium Option

What is true about nonforfeiture values?

Required by state law to be included in the policy

Which of the following is true regarding a single life settlement option?

it provides income the beneficiary cannot outlive

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

Which nonforfeiture option provides coverage for the longest period of time

Reduced paid-up