5 - Life Insurance Premiums, Proceeds, and Beneficiaries - Exam

Exempt from federal income taxes

How are death benefits that are received by a beneficiary normally treated for tax purposes?

mortality tables

The probability of death, listed by year, are demonstrated in

Mortality

When calculating life insurance premium rates, which component is affected by an insured's age and gender?

Insurer's expenses

When calculating life insurance premium rates, which component would an agent's commission fall under?

Mortality rate

Which of the following describes the number of deaths in a year compared to the number of people in a select group?

Dividends

Which of the following is NOT a component of determining policy premiums?

Interest Option

Pam is the primary beneficiary of a life insurance policy and wants to let the death benefit accumulate and receive only the monthly investment proceeds. Which settlement option should she choose?

The insured's estate

A creditor would be allowed rights to life insurance policy proceeds if which of the following beneficiaries is chosen?

money paid by the insured to acquire a policy's benefits

Premiums are best described as

Extended term option

Which of the following is NOT a life insurance settlement option?