EXAM FX CHAPTER 4 STUDY

Revocable Beneficiary

A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policyowner should have her husband named as the

Pay a reduced death benefit

An insured has had a life insurance policy that he purchased 3 years ago when he was 40 years old. He is killed in an automobile accident and it is discovered that he is actually 45 years old, and not 43, as stated on the application. What will the company do?

the policy will terminate when the loan amount with interest equals or exceeds the cash value

An insured stops making payments on a loan taken from his cash value policy. What will most likely happen?

Income for 2 or more recipients until they die

Life income joint and survivor settlement option guarantees

The policyowner can specify the way proceeds are split in the policy

The owner of a life insurance policy wishes to name two beneficiaries for the policy proceeds. What will the soliciting insurance producer say?

The same face amount as in the whole life policy

Under an extended term nonforfeiture option, the policy cash value is converted to

Lump Sum

What is the other term for the cash payment settlement option?

Equal to the original policy for as long as the cash values will purchase.

When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?