Chapter terms

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

What type of policy would offer a 40 year old the quickest accumulation of cash value

20 pay life

Lump sum option

A death settlement option where death benefit is paid in a single payment, minus any outstanding policy loan balances and overdue premiums. The lump sum option is considered the automatic ("or default") option for most life insurance contracts

Which of these is an element of a variable life policy

A fixed level premium

K is looking to purchase renewable term insurance. Which of these types of term insurance may be renewable

Level

Net payment cost index

A formula used to determine the true cost of a policy for a policyowner. It uses the same formula as the surrender cost index with the exception that it doesn't assume that the policy will be surrendered at the end of the period. The net payment cost index is useful if ones primary concern is the amount of death benefits provided in the policy.

Morality rate

A measure of the number of deaths (in general, or due to a specific cause) in some population, scaled to the size of that population, per unit time.

Net single premium

A premium calculation used to calculate an insurer's policy reserves factoring in interest and morality

Modified premium

A premium funding option characterized by an initial premium that is lower than it should be during than it should be during an introductory period of time (normally the first three to five years). After this time, the premium will increase to an amount greater than what the initial level premium would have been, and then remains level or constant for the life of the policy

Whose life is covered on a life insurance policy that contains a payor benefit clause?

Child

Which of these types of policies may NOT have the automatic premium loan provision attached to it

Decreasing term

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

Deducted when the policy is discounted

Morbidity rate

Demonstrates the incidence and extent of disability that may be expected from a given group of persons

P owes a 25,000 life policy that pays the face amount to him if he lives to age 70 or to his beneficiary if he dies before age 70. What kind of policy does p own?

Endowment at age 70

Per capita (by the head)

Evenly distributes benefits among all named living beneficiaries

Per stripes (by the bloodline)

Evenly distributes benefits amongst a beneficiary's heirs in the event that a beneficiary dies before the insured

How are policyowner dividends treated in regards to income tax

Interest on accumulations is taxed

All of these settlement options involve the systematic liquidation of the death proceeds in the event of the insured's death except

Interest only

A father who dies within 3 years purchasing a life insurance policy on his infant daughter can have the policy premiums waived under which provision

Payor provision

The Life income

The settlement option that pays a specified amount to an annuitant, but pays no residual value to a beneficiary.

What type of life insurance incorporates flexible premiums and an adjustable death benefit

Universal Life


संबंधित स्टडी सेट्स

AAPC Chapter 14 Practical Application

View Set

funds test 1 saftey questions and answers

View Set

WEEK 3: Domain 6 Confidentiality Quiz

View Set

Developmental Psychology Test 1 (ch. 1-6)

View Set