Life Insurance Exam Prep 2

An employee will be taxed on the cost of group life insurance paid by the employer if the amount of coverage exceeds

$50,000

In addition to total disability, what qualifies a person to collect Social Security?

6 accumulated work credits in the last 3 years

Consideration Clause

A clause in a Life policy specifying the premium due for the insurance protection and the frequency of payment (also called Mode). The more frequent the Mode of Payment, the higher the cost, since most insurers charge service fees for budget payments. The cheapest Mode is annual.

Who can surrender a deferred annuity contract?

Only the annuity owner

Peril vs. Hazard

Peril is the CAUSE of loss. Hazard is a condition that increases LIKELIHOOD of loss.

When is the death benefit paid in a survivorship life policy

Upon the second death

When is an insurance policy approved?

When the insurer recieves the application

Guaranteed lifetime withdrawal benefit

annuity rider that ensures the owner will recieve from the annuity at least the amount paid for the annuity

Another name for percieved authority

apparent

An agent selling variable annuities must be registered with

finra