Primerica Study Questions 4

Which of the following premium payment modes will incur the lowest overall payment?

Annual

Which of the following best describes fixed-period settlement option?

Both the principal and interest will be liquadated

An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had what provision?

Common disaster

All of the following statements concerning dividends are true EXCEPT

Dividend amount are guaranteed in the policy

An insured pays $1,200 annually for her life insurance premium. The insured applies this year's $300 worth of accumulated dividends to the next year's premium, thus reducing it to $900. What option does this describe?

Reduction of Premium

All of the following are TRUE statements regarding the accumulation at interest option EXCEPT

The interest is not taxable since it remains inside the insurance policy