4 - Life Insurance Premiums, Proceeds and Beneficiaries
When can a policyowner change a revocable beneficiary?
Anytime
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
policyowner's rights are limited under which beneficiary designation?
Irrevocable
A policyowner is able to choose the frequency of premium payments through what policy feature?
Premium Mode
J chooses a monthly premium payment mode on his Whole Life insurance policy. Which of these statements is correct?
The gross premium is higher on a monthly payment mode as compared to being paid annually
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
What kind of life insurance beneficiary requires his/her consent when a change of beneficiary is made?
irrevocable beneficiary
T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary?
Request of the change will be refused
Which of these statements is INCORRECT regarding the federal income tax treatment of life insurance?
entire cash surrender value is taxable
A policyowner would like to change the beneficiary on a Life insurance policy and make the change permanent. Which type of designation would fulfill this need?
irrevocable
J would like to maintain the right to change beneficiaries. Which beneficiary designation should be used?
revocable
C is trying to determine whether to convert her convertible term life policy to whole life insurance using her original age or attained age. What factor would affect her decision the most?
the cost
On a life insurance policy, who is qualified to change the beneficiary designation?
the policy owner
Which statement regarding the Change of Beneficiary provision is true?
the policy owner can change the beneficiary
Which premium schedule results in the lowest cost to the policyowner?
Annually
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, which of these statements is true?
Proceeds will be payable to K's estate if P dies within a specified time
