Life Insurance 2023

J is 35-years old and looking to purchase a whole life insurance policy. Which of the following types of policies will provide the most rapid growth of cash value?

20 Pay Life - the shorter the pay period the faster the cash value growth period

a ________ rider may be used to include coverage for children under the parents life insurance policy

A Term

Which of the follow life insurance policies combine term insurance with an investment element?

A universal life policy

Which of the following life insurance policies combine term insurance with an investment element?

A universal life policy

B owns a Whole Life policy with a guaranteed insurability option that allows him to purchase, without evidence of insurability, stated amounts of ?

Additional whole life coverage at specified times

The consideration clause in a life insurance contract contains what pertinent information?

Amount of premium payments and when they are due

What action can a policyowner take if an application for a bank loan requires collateral?

Assigned policy ownership to the bank

What action will an insurer take if an interest payment on a policy loan is not made on time?

Automatically add the amount of interest due to the loan balance

How are surrender charges deducted in a life policy with a rear-end loaded provision?

Deducted when the policy is discontinued

What provision in a life insurance policy states that the application is considered apart of the contract

Entire contract provision

Which of the following non-forfeiture options offer the highest death benefit?

Extended term

the accidental death and dismemberment provision in a life insurance policy would pay additional benefits if the insured?

Is blinded in an accident

K's whole life insurance policy lapsed two months ago due to nonpayment. She would now like to reinstate the policy. All of these statements are correct about the policy's reinstatement EXCEPT

K will forfeit the right to use the automatic loan provision upon reinstatement

Which if these is not an example of a nonforfeiture option?

Life Income

The accelerated death benefit in life insurance policy is also known as?

Living benefit

All of these insurance products require an agent to have proper FINRA securities registration in order to sell them EXCEPT for

Modified Whole life

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

K owns a Whole Life policy. If K wants an increasing Death Benefit to protect against inflation, which Dividend Option should she chose?

Paid Up additional insurance

which of the following previsions guarantees that premiums will be waived if the juvenile life policy owner becomes disabled ?

Payor clause

M has an insurance policy that also has an outstanding policy loan at the time of M's death. The insurer will deduct the outstanding loan balance from the

Policy proceeds

What benefit does the Payor clause on a Juvenile Life policy provide?

Premiums are waived if the payer becomes disabled

Which of the following is an example of a nonforfeiture option?

Reduced paid up option

which of these provisions provide proof of insurability after a policy has lapped?

Reinstatement

Which of these life insurance riders allows the applicant to have excess coverage?

Term Rider

D is the policyowner and insured for a $50,000 life insurance policy. The beneficiary is D's wife. D and his wife divorce and D remarries, transferring ownership of his policy to his new wife. If D dies without making any further changes, to whom will the policy proceeds be paid to?

The Ex-Wife ( the ex wife is still the beneificiary of the policy )

Consideration clause in a life insurance policy indicates that a policy owners consideration consist of a completed application and

The initial premium

What advantage does the renewability feature give to a term policy?

The insured may extend the coverage period

When is the face amount paid under a joint life and survivor policy?

Upon death of the last insured

At what point does a whole life policy endow?

When the cash value equals the death benefit

Which statement is true regarding a variable whole life policy

a minimum guaranteed death benefit is provided

the option that provides an additional death benefit at limited amount of time the lowest amount of time is called?

accidental death and dismemberment rider

A cost of living rider gives the insured?

additional death benefits

What does the insuring agreement in a Life insurance contract establish?

an insurers basci promise

A policy loan is made possible by which of these life insurance policy features?

cash value provision

Which rider provides coverage for a child under a parent's life insurance policy?

child term rider

N is a student pilot with a large life insurance policy. Which of these features would limit the insurer's obligation in the event N was killed while flying as a student pilot?

exclusion

a nonforfeiture clause gives the policy owner?

guaranteed values even if the policy has lapsed

The agreement in a life insurance contract that states a specific sum of money will be paid to a designated person upon an insured's death is called a(n)

insuring agreement

How are policyowner dividends treated in regards to income tax?

interest on accumulations is taxed

B receives yearly dividends and interest from a participating life insurance policy. Which of these should B include as gross income for federal income tax purposes?

interest only

An insured inability to perform two or more activities of daily living may trigger which type of policy rider?

long term care

which of the following statements are correct about accelerated death benefits?

must have a terminal illness to qualify

all of these statements concerning settlement options are true except what?

only the beneficiary may select

In a life insurance policy, which provision states who may select policy option, designate and name of beneficiary, and be the recipient of any financial from the policy?

owners right

Which statement is true in regards to a policy loan?

past due interest to a policy loan is added to the Toal debt

B recently died and was insured with a life insurance policy for over five years. During the claims process, the insurer discovered that B had understated his age by 5 years at the time of application. In this situation, the insurer will

pay the amount that the premium would have purchased at the correct age

D was actively serving in the Marines when he was killed in an automobile accident while on leave. His $100,000 Whole life policy contains a War Exclusion clause. How much will D's beneficiary's receive?

the full face amount

a free look provision begins?

upon receipt of the policy by the policy owner

a return of premium life insurance is ?

whole life and increasing term