Life Premiums and Benefits

J chooses month premium mode on his Whole Life Insurance policy , which of these is truer? A- the gross premium is higher on a monthly payment mode as compared to being paid annually B- the gross premium is lower on a monthly payment mode as compared to being paid annually

A-the gross premium is higher on a monthly payment mode as compared to be paid annually

If a life insurance policy has stated beneficiary all the proceeds are tax income free and

All proceeds are income tax free in the year in which they were received

Which premium schedule results in the lowest cost to the policyowner?

Annual

When can a policy owner change a revocable beneficiary?

Anytime

How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy?

If the primary beneficiary dies before the insured

If the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first, where are the death proceeds to be directed under the Uniform Simultaneous Death Act?

Insured's contingent beneficiary

A policy owner's rights are limited under what beneficiary designation?

Irrevocable

What settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary?

Life Income

A guardian is required to be appointed in the beneficiary clause of the contract ; or that a guardian be appointed in the will .

Minor Beneficiary

A policy owner is allowed to pay premiums more than once a year under which provision?

Mode of Premium

P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to?

P only

Describe a Contingent Beneficiary ?

Person designated by the insured to receive the policy benefits , in the event that the primary beneficiary dies before the insured

On a life insurance policy, who is qualified to change the beneficiary designation ?

Policy owner

A policy owner is able to choose the frequency of premium payments through what policy feature ?

Premium Mode

K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, who would the proceeds go to?

Proceeds will go to K's estate if P dies within a specified time.

A primary beneficiary has died before the insured in a life insurance policy. A contingent beneficiary is also named in the policy. What will occur when the insured dies ?

Proceeds will go to the contingent beneficiary.

J would like to maintain the right to change the beneficiaries, which beneficiary designation should be used ?

Revocable

M purchased an Accidental Death an Dismemberment (AD&D) policy and named his son as beneficiary. M has the right to change the beneficiary designation at anytime. What type of beneficiary is his son?

Revocable

The common disaster clause provides that if both the insured and the sole named beneficiary were to die in a common accident. What would happen ?

This clause provides the payment of proceeds to the insured's estate

A standard set of laws, enacted by some U.S states to deal with inheritance in the case that two people die simultaneously. The act also states that if two or more people die within 120 hours of each other , each is considered to have predeceased the other unless a will or other document specifies otherwise

Uniform Simultaneous Death Act

K has a life insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed?

daughter