life quiz4
What percent of personal life insurance premiums is usually deductible for federal income tax purposes?
0%
A policyowner is able to choose the frequency of premium payments through what policy feature?
Premium Mode
Which of the following statements is CORRECT regarding the tax treatment of a lump-sum payment paid to a life insurance policy's primary beneficiary?
All proceeds are considered taxable income in the year they are received
A policyowner would like to change the beneficiary on a Life insurance policy and make the change permanent. Which type of designation would fulfill this need?
Irrevocable
Which type of life insurance beneficiary requires his/her consent when a change of beneficiary is attempted by the policyowner?
Irrevocable beneficiary
A primary beneficiary has died before the insured in a life insurance policy. A contingent beneficiary is also named in the policy. Which of the following will occur when the insured dies?
Proceeds will go to the contingent beneficiary
M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as beneficiary. M has the right to change the beneficiary designation at anytime. What type of beneficiary is his son?
Revocable
If the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first, where are the death proceeds to be directed under the Uniform Simultaneous Death Act?
Insured's contingent beneficiary
Which statement regarding the Change of Beneficiary provision is true?
The policyowner can change the beneficiary
Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary?
Life Income
Which statement is true regarding a minor beneficiary?
a.Normally, a guardian is required to be appointed in the Beneficiary clause of the contract b.Normally, the death proceeds are required to be held in trust until the beneficiary reaches the age of 21 a
When can a policyowner change a revocable beneficiary?
anytime
K has a life insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed?
daughter
T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary?
Request of the change will be refused
