Individual life insurance contract - provisions in options

Which is true about cash surrender non forfeiture option

Fun succeeding the premium paid our taxable as ordinary income

According to the entire contract provision, a policy must contain

A copy of the original application for insurance

Which of the following policy components contains the companies promise to pay?

Insuring clause

All of the following statements concerning dividends are true except

Dividend amounts are guaranteed in the policy

What type of account will most likely be established for a minor

I trust

Using a class designation for a beneficiary means

Naming beneficiaries as a group

And insured received an annual Life Insurance Divet in check. What term best describes arrangement

Cash option

What is the benefit of choosing extended term as a non-forfeiture option

It has the highest amount of insurance protection. Under this option the insurer uses a policy cash value to convert to term insurance for the same face amount as the former permanent policy the duration of the new term coverage lasts for as long a . As the amount of cash value will purchase

All of the following are beneficiary designations except

Specified Beneficiary designations determine the order in which benefits will be paid primary or contingent which includes secondary and tertiary. Ty

An individual purchased a life insurance policy on his life naming his wife as primary beneficiary and their daughter as contingent beneficiary. Under what circumstances could the daughter collect the death benefit?

The primary beneficiary predeceases the insured

What limits the amount that a policy owner may borrow from a whole life insurance policy?

Cash value

Which of the following applies to the 10 day free look privilege?

A permit to the insured to return the policy for a full refund of premium Spain

A policy owner fails to pay the premium due on his whole life Policy after the grace period passes but the policy remains in force. This is due to a provision?

Automatic premium loan

Which Nonforfeiture option has the highest amount of insurance for

Extended term

How does the insured typically decide on which settlement option to choose for his or her beneficiary?

He or she typically decides by determining if the beneficiary will need one payment or a city stream of income

The policy owner wants to make sure that upon his death, the life policy will pay portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policy owner choose

Interest only option With interest. Only option the insurance company retains the policy proceeds and pays interest on the proceeds to the recipient at regular intervals

What would be an advantage to naming contingent or secondary beneficiary in a life insurance policy

It determines who receives policy benefits as a primary beneficiary is deceased. A policy owner fails to pay for the premium due on his whole life policy after the grace period passes but the policy remains in force this is due to what provision

In a case where the primary beneficiary predeceases the insured in the event of the insured's death the death Proceeds will be paid to

The contingent beneficiary

What is the purpose of a fixed period Settlement option?

To provide a guaranteed income for a certain amount of time When the fifth. Installments option is selected the insurer agrees to pay the proceeds an equal installments of a specified period of time

And insured and his wife both involved in a head on collision the husband Dies instantly and the wife days 15 days later. The company pays the death benefit to the estate of the insured. This includes that they like insurance policy had what provision

Common disaster. Under the uniform simultaneous that long, does as a provision in the law will assume that the primary beneficiary dies first in common disaster as long as beneficiary dies within a specified period of time following the death of the insured this provides of the proceeds will be paid to either of the contingent beneficiary or the end it insured to state if no contingent beneficiary is designated

Under which not for future option does the company pay the surrender value and have no further obligations to the policy owner

Cash surrender

And insured has a life insurance policy that he purchased three years ago when he was 40 years old. He is killed in an automobile accident and it discovered that he is actually 45 years old. And not 43. As stated on the application LOL what were the company do?

Pay a reduced death benefit

And insured misstates her age at the time of life insurance application taken. This misstatement may result in

Adjustment in the amount of death benefit

When the insured select the extended term nonforfeiture option which cash money will be used to purchase term insurance with that face amount?

Equal to the original policy for as long as the cash values will purchase. With this option the cash value is used as a single premium to purchase the same face amount as the original policy for as long as a period of time as a cash will buy at the insured's current age

Jay applied for life insurance policy on January 10. The policy was issued on January 31. Jay's agent was very vacationing at the time of the policy was issued, so Jaden not receive the policy until February 18 that he does not want to party. When would you need to return the policy to the insurer in order to receive a full refund of premium paid.

February 28, or 10 days after the time the policy is delivered

Which of the following protects the insured for me unintentional policy lapsed due to a non-payment of premium

Automatic premium loan

When a whole life policy lapses or is insured prior to maturity, the cash value can be used to

Purchase a single premium policy for a reduced face amount

And insured will be allowed to reactivate her left life insurance policy if action is taking with a certain period of time and proof of insurability of the provided which policy provision allows us

Reinstatement provision. And that's policy may be reinstated within three years by paying back premiums with interest and proving insurability

Which type of beneficiary is changeable at any point

Revocable beneficiaries can be changed at any point. Irrevocable bit beneficiaries must give a permission to the policy owner in order for beneficiary to be changed

A 40 year old man buys a whole life policy and named his wife as his only beneficiary but his wife does 10 years later he never remarried and dies at 61 leaving to grown-up children. Assuming that he never change the beneficiary of the policy will go to

The insured's estate mean

Which of the following is true about now for future values

They are required by the state law to be included in the policyAnd cannot be altered by the policy owner. A table showing the nonforfeiture values for the next 10 years must be included in the policy

The paid up addition option uses the dividend

To purchase a smaller amount of the same type of insurance as you original policy. The dividends are used to purchase a single premium policy in addition to the face amount of the permanent policy