Insurance

Which of the following factors determines the amount of each installment paid in a life income option agreement

Age?

A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index such as

Cost of living rider

All of the following statements concerning dividends are true except

Dividend amounts are guaranteed in the policy

All of the following are true dividend options except

Fixed period installments

Life income joint and survior settlement option guarentees..

Income for 2 or more recipients until they die

Which settlement option provides a single beneficiary with income for the rest of his or her life ?

Single life

All of the following are true regarding the guaranteed insurability rider except

The is available to all insurers with no additional premium

What is the other term for the cash payment settlement option

Lump sum

An insured had chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries ?

The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive

The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called

Joint and survivor

If a settlement option is not chosen by the beneficiary or policy owner which option will be used

Lump sum

The policy owner pays for her life insurance annually. Until now, she has collected a non taxable dividend check each year. She has decided that she would rather use the dividends to help pay for her next premium. What option would allow her to do this

Reduction of premium

The paid up addition options uses the dividend

To purchase a smaller amount of the same type of insurance as the original policy