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?
