Life Provisions

A policyholder may generate taxable income from which the following dividend options

Accumulation of interest

Which of the following nonforeiture options offers the highest death benefit

Extended term

S would like to use dividends from her insurance policy to purchase paid up additions. all of these would be factors that determine how much coverage can be purchased except

beneficiary's age

t took out a 50,000 life insurance policy with an accidental death and dismemberment rider. five years later, t commits audi use. How much will the insurer pay

50,000. suicide is 1-2 years

S has a whole life policy with a premium payment due soon. which provision would keep the policy in force if S does not make the payment and the policy has adequate cash value from which the premium payment can be made

Automatic policy loan

A while life insurance policy owner does Not have the right to

Change the grace period

N is covered by a Term Life policy and does not make the required premium payment which was due August 1. N dies September 15. What action will the insurer take?

Claim will be denied

Prevents an insurer from changing the terms of the contract with the policy owner by referring documents not found within the policy itself

Entire contract provision

The purpose of the ___ period clause is to avoid unintentional lapse of a life insurance policy

Grace

In a life insurance contract, an insurance company's promise to pay stated benefits is called the

Insuring Clause

in a life insurance policy, which provision states who may select policy options, designated and name a beneficiary and be the recipient of any financial benefit from the policy

Owners rights

P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to a disability?

P will still receive declared dividends

s buys a 10,000 whole life policy and pays an annual premium of 100 s does 5 years later and the insurer pays the beneficiary 10500. what kind of rider is S

Return of premium rider

Which of the following statements about accumulated interest earned on dividends from an insurance policy is true

Taxed as ordinarily income

Contains monthly morality change as well as self directed investment choices

Variable universal life

Dividends paid from a life insurance policy are

issued by the insurer

which of these is not considered to be a right given to a policy owner

modify a provision in the insurance contract

Which life insurance rider typically appears on a juvenile life insurance policy

payor benefit rider

What is the Suicide provision designed to do?

safeguard the insurer from an applicant who is contemplating suicide

Typically a life insurance death benefit is paid by a lump-sum payment. A(n) __________ option is a method of distributing a Life Insurance policy's death benefit OTHER than by a lump sum payment.

settlement