Life Insurance
An insured has a life insurance policy that requires him to only pay premiums for a specified number of years until the policy is paid up. What kind of policy is it?
Limited-Pay Life
Guaranteed renewable =
Renew policy until 65
Ability to change beneficiaries at any time
Revocable
Under what plan does preventative dental treatment NOT apply towards deductible?
Nonscheduled
Term insurance
Provides greatest amount of coverage for lowest premium & has no cash value
Automatic Premium Loan
(Not required) prevents unintentional lapse of a policy due to no payment of premium
Metal Levels
1. Bronze 60% 2. Silver 70% 3. Gold 80% 4. Platinum 90%
When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option?
Extended term
With Adjustable Life, the owner can change all of the following EXCEPT
Insured
The policy owner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?
The death benefit can be increased by providing evidence of insurability.
Least expensive first year premium?
Annually renewable term
What IS required for a plan to be qualified?
Formally written & communicated to employees Exclusive benefit of employees & beneficiaries Plans benefits OR contribution formula can't discriminate in favor of prohibited group Participation in plan may not be geared Plan is permanent
Capital sum vs principal sum?
Capital sums are % of principal sums
Straight life policies ?
Charge a level premium Provide a level, guaranteed death benefit
What's NOT allowed on 1035 exchange?
A whole life policy is exchanged for a term policy (Must be exchanged on same life)
Insurance would pay majority of covered expenses if chosen provider in plans list. If not on list bill is higher ?
PPO
Best describes taxation of individual disability income insurance premiums & benefits?
Usual, customary & reasonable
Whole life- first years of policy premiums are lower than those of a straight life & in subsequent years premiums are higher than those of straight whole life?
Modified life
Limited policy notice
Printed on first page
At age 30 an applicant wants to start an insurance program but realizes needs will change, wants a policy that can be modified as those changes occur?
Adjustable life
Entire Contract
policy, copy of the application, riders/provisions
Most LTC plans have which of the following features?
Guaranteed renewability
