PSI 15: life insurance policy provisions, options, & riders 10-12

what is the return of premium rider?

an increasing amount of term insurance that always equals the total of premiums paid-up to the current point

in which scenario will an accelerated death benefit be denied?

an insured with a permanent and total disability with the expectation that he will never be able to work again

how are term riders used?

to purchase insurance on a family member of the originally insured

at age 20, an insured purchased a $100,000 whole life paid at 65 policy with a double indemnity rider. At age 75, the insured is hit and killed by a train. How much will the company pay?

$100,000

Stan is insured with a $100,000 Whole life policy having $50,000 in cash value and a double indemnity rider. If Stan dies in an accident, what amount will his beneficiaries receive?

$200,000

which statement concerning contributory group life plans is TRUE?

employees must pay part of the premium

which life coverage allows an employer to deduct premiums as ordinary business expenses?

group life

Which option enables the insured to purchase additional disability income protection at specified future dates at the applicable premium rate at the attained age at the time of future purchase?

guaranteed insurability

disability would trigger all of the following life riders EXCEPT

guaranteed insurability

which disability income rider allows policy owners to increase their policy limits over time as their income increases without evidence of insurability?

guaranteed insurability rider

what is an impairment rider?

it lists specific conditions in the contract that are excluded from the contract

why is the accidental death benefit referred to as double indemnity?

it provides twice the face value in the policy for death due to accident

which type of rider reimburses health and social service expenses incurred in a convalescent or nursing home facility?

long term care rider

what is it called when a life insurance policy pays a multiple of the coverage amount when certain types of accidents occur?

multiple indemnity

which statement about a roth IRA is FALSE?

payout must begin at age 70 1/2

which statement about a Family (Protection) policy is FALSE?

premiums increase as newborns are added to the policy

what does it mean if ABC mutual issues a life policy with no suicide clause?

suicide is covered immediately