Life Insurance Premiums, Proceeds and Beneficiaries

Which would be described as a beneficiary designation by class? Children of the insured Estate of the insured Tertiary beneficiary A specific named beneficiary

Children of the insured

Which life insurance settlement option pays a stated monthly amount until the proceeds are gone? Fixed amount option Fixed period option Life income option Interest only option

Fixed amount option

Which life insurance settlement option pays lifetime benefits to two or more people? Life income with period certain Joint Joint and survivor Life income

Joint and survivor

A life insurance beneficiary died after receiving only six payments under the policy's life income settlement option. What happens with the remaining balance of the death proceeds? Transfers to the insured's estate Transfers to the beneficiary's estate Donated to charity Kept by the insurance company

Kept by the insurance company

How much is normally paid to a policyowner in a life (viatical) settlement? Total premiums paid plus interest Full face amount More than the face amount Less than the face amount

Less than the face amount

Wyatt is shopping for life insurance and is mainly concerned with the policy's death benefit. Which index should he be looking at when making comparisons? Net gain index Net payment cost index Cost surrender index Guaranteed renewable index

Net payment cost index

Which statement regarding the joint and survivor life insurance settlement option is INCORRECT? Age of the beneficiaries plays a factor when determining the payment amounts Income continues until the last beneficiary dies Two or more beneficiaries can be paid The income payments are larger as compared to a single-life income option

The income payments are larger as compared to a single-life income option

Al surrenders his life insurance policy for its cash value. The total of the premiums paid into the policy minus total dividends received in cash or used to offset premiums is referred to as the premium basis net proceeds cash basis cost basis

cost basis