Insurance

An insured purchases a 20-Pay Life Policy with a face amount of $25,000 and an annual premium of $1,000. The insured dies 15 years later when the cash value is $5,000. What amount will the beneficiary receive?

$25k -- If death occurs at any point prior to age 100, the beneficiary receives the death benefit of $25,000.

There are ______ methods available to determine the income objective after the death of the client for planning purposes.

2 - capital liquidation & capital conservation

There are ____ broad categories of qualified retirement plans.

2 defined benefit & defined contribution

An evaluation of Simon's past earnings reveals his average earned monthly income to be about $4,000 monthly. The greatest amount of benefit that Simon will likely be able to purchase under a Disability Income Policy, in order to reduce malingering in the event of a claim, is:

2500 monthly usually 60-70% of income

Under the New York State Disability Benefits Law, what is the maximum number of weeks one may receive a benefit?

26 weeks in a 52 week period

Nonprofit organizations as qualified by the internal revenue code _________ are also eligible to establish Tax Sheltered Annuities for their employees.

501(c)(3)

In a viatical settlement, a third party purchases a policy from a terminally ill insured for approximately _____ to _____% of the policy's face amount.

60/80

The Bronze plan covers ;. A catastrophic plan covers ; and a silver plan covers

60;50;70

The policies with fixed interest loan rates usually have a maximum interest rate

8%

A partial withdrawal is considered ______________.

A partial surrender of the policy

reserve

A reserve is an amount representing actual or potential liabilities kept by an insurer to cover debts to policyholders. A reserve is usually treated as a liability.

Representation

A statement believed to be true to the best of one's knowledge.

Warrant

A statement that is guaranteed to be true, and if not the contract will be void, is referred to as:

The _________ include bathing, continence, dressing, eating, toileting, and transferring.

Activities of Daily Life

Experience rating utilizes _______ in determining the rate the insurer will charge for group coverage in each year of coverage.

Actual loss experience of the group

producer's fiduciary capacity

Agents are not subject to fiduciary requirements. An agent may not commingle the insurer's funds with their personal funds without express permission. An agent may withdraw funds from the premium fund account under certain circumstances.

Under the ACA, Stephen purchased a Silver plan that covered him, his wife and his 2 children, ages 17 and 24. Since he is a sole proprietor with no employees, what portion of his premiums is he able to deduct?

All of the premiums made

If a non-qualified fixed or variable annuity owned for 15 years is surrendered, what is the income tax consequence?

Any amount received in excess of its cost basis is taxable as ordinary income

Which of the following statements is true with respect to a cease and desist order?

Any person who violates a cease and desist order may be fined a penalty of up to $5,000 per violation

Which of the life insurance policies does not develop a cash value?

Any type of term insurance because it is temporary

Premium payments made into a variable universal life policy:

Are invested in one or more investment portfolios at the policyowner's option

In a long-term care policy transaction, when must the outline of coverage be provided to the applicant?

At the time of initial solicitation and prior to the application

When must an insurer provide a Medicare Supplement Buyer's Guide and an Outline of Coverage?

At time of application

J took out a life policy when he was 35. It had a conversion feature that he exercised at age 45. Age 45 is referred to as his ____ age.

Attained

What taxes apply to the benefits under an individual Disability Income Policy on which the insured has paid the premiums?

Benefits received from an individual Disability Income Policy are not subject to taxation.

Taxes on Business overhead expense

Benefits received from the business overhead expense plan are taxable to the business owner and must be reported as income; however, to the extent that benefits are offset by deductions for payments made to others (to suppliers for inventory items, employees' salaries, taxes, rent, and other business expenses), only the net benefit is taxable as income.

An activity involving, but not limited to, offering to enter into, soliciting, negotiating, procuring, effectuating, monitoring, or tracking life settlement contracts is referred to as?

Business of Life Settlement

A generic brochure was developed by the ________ to assist prospective buyers of life insurance, which includes descriptions of all the basic types of life insurance and comparisons of their relative costs.

Buyer's Guide NAIC

Diabaility and PFL

Cannot receive at same time

A beneficiary receives ample income each month from the interest earned while the insurance company retains the principal. This is referred to as which of the following?

Capital Conservation

The rates charged by Independent Practice Association HMO physicians are prenegotiated on a ________ basis.

Capitation, or capitated

In a reinsurance transaction, the company that wishes to transfer all or a portion of the financial risk of loss is known as the _______ company.

Ceding

Before a carrier from another state can transact insurance business in New York, which of the following must be issued?

Certificate of authority

The Affordable Care Act requires that if an insurer fails the Medical Loss Ratio test (the loss ratio is lower than the required minimum) in a calendar year for all plans in a given market segment (individual or group), the excess premium is to be refunded to the:

Consumers enrolled in plans in that market segment

Life insurance policy premiums establish a _________ in the policy for tax purposes.

Cost Basis

In terms of New York's required benefits, which of the following is true regarding insurers providing coverage for optometric, podiatric, dental, and psychological services?

Coverage must be provided whether services are performed by a physician or specifically licensed professional

In New York, a health service corporation or medical expense indemnity corporation offering medical, major medical, or similar comprehensive insurance must provide coverage for preventive and primary care services without any:

Deductibles and coinsurance

Abigail has a preexisting condition noted in her new A & H policy. If she submits a claim for this condition within a specified time stated in the contract, what will the insurer do?

Deny the claim

Which type of producer authority is specifically stated in the producer's contract?

Express authority is the authority stated or written in the producer's or agent's contract.

ERISA is a ________ law.

Federal

The insuring clause is found:

First page of the policy

X is 57 years old, and planning for their retirement. They do not know what their cash flow will look like over the next 10 years, but want to fund an annuity to provide retirement income. Which of the following premium funding methods would be best for X to consider?

Flexible

Which of the following provisions commence at the time of the delivery of the policy to the insured?

Free Look Period which is 10 days

classifications of substandard risks

Graded; Tabular, Rated-Up Age

Every Long-Term Care Policy must contain

Guaranteed Renewal provision

If an applicant is a minor, who signs the application?

Guardian

In addition to informed written consent, a general description and statement of purpose is required for which of the following?

HIV related tests

Which of the following individuals is not eligible to establish a Health Savings Account?

HMO owners

Ashley wanted to establish her company benefit plan so that it could cover her individual health insurance premiums and out-of-pocket expenses without group insurance or loss of unused benefits. After some research, she established a:

HRA-employer contributions are not limited vs HSAs are limited

What is the difference between a Health Reimbursement Account (HRAs) and a Health Savings Account (HSA)?

HRAs are owned by the employer, and are not portable when an employee leaves. There is no limit on employer contributions, and non-qualified cash disbursement are not allowed.

A variable life policy death benefit

Has a death benefit that never falls below a guaranteed minimum

Home health care provides benefits for all

Home health aid, light housekeeping, limited nursing services; not job rehab

The income-earning ability lost to dependents by the insured's premature death is a way to evaluate an individual's insurance needs. This method is known as the:

Human Life Value Approach

A SIMPLE plan may be established either as a(n):

IRA or a 401(k) plan

The Modified Endowment Contract (MEC) rules were put into place because:

Individuals were overfunding life insurance policies and using them as tax-free investment vehicles instead of a way to protect survivors against the financial cost of one's death

Which of the following manufactures and issues insurance policies and contracts?

Insurance Co's

Surplus lines

Insurance coverages that cannot be purchased form any authorized insurer in a state. They are considered to be an authorized non-admitted company that specializes in higher risk insurance.

Which provision states that if an insured has individual policies with more than one insurer that covers the same claim, both insurers are primary and each will pay the percentage of the claim equal to their percentage of the total coverage available.

Insurance with other insurers

Optional Uniform Provisions are included in the contract at the _______ option.

Insurer's

The return of premium rider

Is an increasing term policy which allows the insurer to pay out the policy's death benefit plus the cumulative premiums paid.

A participating life insurance policy has a long-term care rider. The insured qualifies for the benefit. Where does the initial benefit money come from?

It is an advance of the face amount of the policy

No assignment of a policy will be binding on the insurer, unless:

It is in writing and received at the insurer's home office

TRICARE for Life

It is like a medicare supplement and not a primary plan

Medicare Part A payment

It is prepaid through FICA taxes and is automatic when that worker qualifies for Social Security retirement benefits ('fully insured')

How does an Option A death benefit feature of a Universal Life policy work?

It pays out the policy's face amount

Which of these is a qualified plan designed specifically for unincorporated self-employed individuals?

Keogh Plan

Withdrawals from a non-qualified annuity that is not part of an annuitization are taxed on which of the following methods?

LIFO

What do ADLs trigger?

LTC insurance

Individuals who do not enroll during the initial enrollment period are considered ___________ enrollees.

Late

Quentin, age 65, has a life insurance policy he no longer needs and no longer can afford, but he does have a need for cash. XYZ Inc. purchased his policy for less than the face amount but more than the cash value and is now the policyowner and premium payor. This was which of the following transactions?

Life Settlement b/c a viatical settlement is only when the insured is terminally ill

The two categories of Group Disability Income policies are:

Long-Term and Short-Term

Which of the following death benefit settlement options pays out a benefit that is 100% income tax-free to the recipient?

Lump Sum

Instead of electing to annuitize the annuity, what is another common option chosen?

Lump sum distribution

The purpose of the Healthy New York program is to:

Make standardized health insurance contracts available to small group and uninsured workers

All else being equal, which of the following will receive the largest income benefit payment from an annuity? A Female age 70 B Male age 80 C Female age 80 D Male age 70

Male age 80; shortest life expectancy

Each insurer authorized to transact insurance business in New York must file an annual financial statement with the Superintendent on or before:

March 1

A basic medical plan provides a specified dollar limit per medical procedure as stated in the policy. This specified amount is the:

Maximum benefit the policy will pay for that procedure

Which of the following requires an annual deductible and coinsurance?

Medicare Part B Medical

Prescription Drug Coverage on Medicare

Medicare Part B does not cover prescription drugs at all. Part A would cover them but only while hospitalized.

When offering long-term care coverage, nonforfeiture benefits:

Must be offered in all policies

Which type of company is owned by its policyholders?

Mutual Insurance

With regard to the waiver of premium rider, after the disability a policyowner normally:

Need not repay the premiums paid by the company during disability

Under what conditions can a producer alter, change, modify or waive any policy provisions?

Never

Taxes for Premiums paid for personally owned disability insurance

Never deductible

Most group Disability Income contracts are offered on a(n):

Nonoccupational basis

Accident and health insurance policies dont cover

Nonoccupational injuries

Under which of the following plans can an annuity be funded up to the limits set by the insurer rather than by the IRS?

Nonqualified

Interest on Policy Loans

Not Tax Deductible

The purpose of the Re-Entry Term option is to:

Obtain a new term policy at a lower rate

What is a material misstatement?

One which would have caused the insurer to not issue the policy had it been known

When an individual is covered by a three-tiered, consumer driven health plan, the second source or tier of payment usually comes from a/an:

Out-of pocket funds

A(n) ________ has all of the contractual rights in an annuity contract.

Owner

Key Employee Insurance

Pays a benefit to the business when a key employee becomes disabled by helping pay for a replacement, train a new employee, or replace loss of revenue due to the disabled employee's lack of ability to work.

Single Pay/Premium

Pays the total premium up front at a discounted rate. This method of premium would result in the least amount of total premium over the life of the plan. The insured is discounted for paying the total premium up front.

What should a producer do if the policy applied for is issued at a higher rate than was expected?

Personally deliver the policy, explain the rating, reinforce the value of the policy, and collect the additional premium

The purpose of the Social Insurance Supplement rider is to:

Provide benefits in case an insured is declined Social Security disability benefits

How can an annuity payout an income benefit income tax free?

Put it in a ROTH IRA

What type of contract do commercial insurers traditionally market?

Reimbursement

Continuing education requirements apply to:

Resident and nonresident licensees, if an examination was required

Every LTC Policy that provides benefits of homecare or community-based services shall provide all of the following,

Respite care, hospice and adult day care NOT ACUTE CARE

On the day a newly-issued policy was to be delivered and the initial premium collected, the producer discovers that the insured is in the hospital with a heart condition pending surgery. What should the producer do?

Return the policy to the insurer with a letter of explanation

Linda wants her husband to be the beneficiary of her life policy but also wants to retain all rights of ownership. Which of the following types of beneficiary designations should she use?

Revocable Beneficiary

The policy summary is a separate document with a promptly placed title that reads as follows:

STATEMENT OF POLICY COST AND BENEFIT INFORMATION

All of the following could be approved as Long-Term Care facilities, except: A A custodial care facility B A skilled nursing facility C An intermediate care facility D A sanitarium for weight loss

Sanitarium for weight loss

If incorrect or unverifiable information is found on an applicant's Credit Report, the Fair Credit Reporting Act requires the reporting agency to:

Send the correct information to all parties who received a report within the prior 24 months

Which of the following contracts must be community rated if they provide hospital and medical benefits?

Small group insurance contracts, including Medicare Supplements

If a client is unsure about whether or not he/she can obtain coverage or how much it would cost, what can the producer suggest to see what the insurer can do without tying up any of the client's funds?

Submit a trial application--a app without a premium

Suspension or revocation of a license cannot take effect until:

Superintendent holds a hearing

Which policy utilizes a Corridor Deductible after Basic Medical Expense Coverage benefits have been exhausted and before Major Medical benefits begin?

Supplementary Major Medical

Lloyd's of London is not an insurance company, but consists of groups of underwriters called _________, each of which specializes in insuring a particular type of risk.

Syndicates

Which of the following best describes producer field underwriting?

Taking the time to probe beyond the stated questions on the application based upon the applicant's responses initial step of the total process of insuring a health risk.

The cost recovery rule states:

That the excess cash value over premiums paid is considered taxable income when withdrawn

The Initial Enrollment Period for Medicare is 7 months in length. Which of the following are the start and stop dates for this period?

The 1st day of the 3rd month before the individual turns age 65 and the last day of the 3rd month after the month the individual turns age 65

How is the superintendent appointed?

The Superintendent is appointed by the governor and holds office until the end of the governor's term

Life Income Option

The annuity Life Income Option (like the Life Income Settlement Option in life insurance) pays a benefit for as long as the annuitant lives, and upon death, all payments cease. It also provides the highest monthly income, all other factors being equal.

The Superintendent will waive any requirements for a nonresident license applicant otherwise applicable if:

The applicant has a current and valid license, and is in good standing, in their home state

Regarding the asset categories for Partnership qualified LTC policies, which of the following correctly defines the dollar-for-dollar asset?

The dollar-for-dollar opion provides assets equal to the amount of benefits actually received

How are employee FICA taxes collected?

The employer withholds the employee's tax and pays it along with the employer's portion.

What is the net amount at risk in a Whole Life Insurance policy?

The face amount less the cash values

Jumping Juveniile

The insured is not required to make any changes to the beneficiary designations. The insured does take over the payment of premiums which are based on the insured's original issue age. The face value has increased by 5x the original amount and will continue for the life of the plan.

One of the greatest advantages of convertible and renewable term policies is that:

The insured is not required to show proof of insurability in order to renew or convert

Once a policy is classified as a MEC, it will maintain that classification for ____________. A

The life of the policy

If a child is covered under more than one group health insurance plan how is it determined which carrier is primary?

The plan covering the parent whose birthday occurs first in the calendar year will be the children's primary coverage

If an insured's policy includes the waiver of premium rider, what happens when the age is reached where the rider no longer applies?

The premium for the policy is reduced

Pre-Existing Conditions

The prior medical conditions for which the applicant has received, or should have received, medical advice or treatment within a specified period before the effective date of a policy are called:

The Spendthrift Clause

The provision which denies the beneficiary the right to commute, alienate, or assign his/her interest in the policy proceeds is:

Why would someone 1035 exchange their existing policy?

To seek higher returns, lower costs, and/or increased benefits

Under what provision will a disability policy provide benefits if the insured is totally disabled because of donating an organ to another individual?

Transplant

If the premiums are not paid on a Traditional Whole Life policy that has been in force for decades with no loan outstanding, what happens?

Unless specified otherwise, the cash values buy extended term

The creditor of Credit Life Insurance

Usually the policyowner and the beneficiary

Who pays all future premiums after the Viatical Settlement?

Viatical Company

If an insurer accepts an overdue premium payment and continues the policy uninterrupted, this is an example of:

Waiver

Unless an exception applies, life insurance proceeds are income taxable in which of the following circumstances?

When a transfer of ownership takes place while the insured was alive

No Loss - No Gain Statutes

When group health insurance is being replaced, ongoing claims under the former policy must continue under the new policy, overriding any preexisting condition exclusion.

All of the following are considered specialized policies, except: A Whole Life B Juvenile Life C Joint Survivorship D Joint Life

Whole Life is considered Ordinary

Under the Coordination of Benefits provision, if an insured is disabled due to a work-related loss, the primary payer is

Worker's Comp

Harry, the annuitant of a non-qualified tax deferred annuity with $40,000 cash value chooses the Life Income with Refund Payment Option when he annuitizes to policy. After receiving $1,000 each month for 80 months, Harry suddenly dies. How much will his beneficiary, his wife Lucille, receive?

Zero -- A Refund Option returns the remaining unpaid principal, since Harry lived well beyond the refund (principal amount) there would be no residual values remaining on the payment option selected.

Systematic withdrawals

_____________ are allowed as a way to access annuity values without having to elect a settlement option or surrender the contract.

If no money is involved when the ownership of a policy changes, this is referred to specifically as a(n) __________.

absolute assignment

Overseas foreign travel emergency coverage is a Medicare supplement:

additional benefit

Which of the following licensees helps with the investigation and settlement of insurance claims?

adjuster

Multiple Employer Welfare Association (MEWA)

allows larger employers that self-fund employee benefits to form a group to reduce the cost of providing those benefits. A MEWA provides economy of scale, as would a Multiple Employer Trust (MET) for smaller employers.

Stranger-originated life insurance

an agreement to transfer the ownership of the policy or the policy benefits to another person.

Social Security uses which of the following definitions to determine total disability?

an individual must be unable to engage in any substantial gainful activity due to a medical condition.

To be 'fully' insured for Social Security Disability benefits,

an individual must have 40 quarters of credit and the disability must last 12 months, or be expected to result in death. In addition to satisfying the 5-month waiting period, the person must be unable to perform 'any substantial gainful activity.'

When an employer pays the full cost of disability income insurance for the employee,

any benefit received is fully taxable to the employee.

A producer must be ______ by an insurer in order to act as agent for that insurer.

appointed

A licensee must provide customers with a notice of its privacy policy and practices

at the time insurance is applied for and at least annually throughout the term of the customer relationship.

ACA Plans that cover emergency care

cannot restrict it to a network or cover it at a reduced rate.

Coordination of Benefits provision

determines that a person's own employer-sponsored health plan is his/her primary coverage. However, if any plan fails to include a coordination of benefits provision, that plan would automatically be primary. Designed to avoid overinsurance

Non-disabling injury rider

does not pay disability income, but pays medical expenses related to an injury that does not result in total disability (emergency room, x-rays, durable medical equipment, etc.). It is a limited form of medical expense coverage added to a disability income policy.

Automatic Premium Loan

enables the insurer to borrow automatically from the policy's cash value, at the end of the grace period, to cover a premium payment to prevent the policy from lapsing. no charge

Bailout Provision (Escape Clause

exercised in falling interest rate environments in some contracts allows the owner to withdraw money from the annuity without surrender charges if the crediting rate falls by more than a specific amount. This will enable the policyowner to consider other savings and investment options.

The nonforfeiture option that provides coverage for the shortest duration is:

extended term

Nonforfeiture provisions

give the owner the rights to the accumulation in the contract.

Guaranteed Minimum Withdrawal Benefit

gives the owner of a variable annuity the right to withdraw funds without having to annuitize?

Universal Life insurance

has a current interest rate which is generally higher than the guaranteed minimum interest rate. It depends on the interest rates the insurer can earn on the assets in its general account; that there is no requirement to pay any premium other than the first. As long as there is sufficient cash value to pay policy expenses (cost of insurance, riders, and other fees) when due, the policy remains in force.

Part A of Medicare is known as:

hospital insurance

Reinsurance

how insurance companies spread out their risk. Particularly larger risks. This is referred to as Risk Sharing or Reinsurance. An insurer retains part of the risk and cedes the remaining risk to one or more insurers with a reinsurance agreement.

The insuring clause

identifies the parties to the contract and the perils covered.

Recurrent Disability

if a second disability is suffered due to the same cause as the first, within a given period of time, the elimination period will be waived.

Replacement of Life Insurance

in which new life insurance or annuity is to be purchased, and the agent knows, or should know, that the existing contract(s) will be assigned as collateral for loan or subject to borrowing exceeding 50% of the cash value.

Rebating

includes the offering of a rebate, special favor, or advantage not contained in the policy, or a valuable consideration, as an incentive or inducement to buy insurance.

Debit life insurance is classified as which of the following?

industrial

Expense loading

is a cost area that can vary from company to company based on its operations and efficiency. These factors are used by all insurers.

Presumptive Disability

is a loss that is presumed to be total and permanent due to the loss of sight, hearing, speech, or the loss of 2 limbs.

A life settlement contract

is an agreement to compensate an owner for less than the expected death benefit of the policy in return for the assignment, transfer, sale, release, devise, or bequest of any portion of the death benefit.

Market-Value Adjustment (Adjusted) Annuity

is an annuity product that features fixed interest rate guarantees combined with an interest rate adjustment factor that can cause the surrender value to fluctuate in response to market conditions.

Self-insurance

is generally an option only for large corporations who may want to limit their risk up to a certain dollar amount, then buy insurance above and beyond that amount.

The purpose of the Common Disaster Clause

is to establish that, if it cannot be determined whether the insured or the primary beneficiary died first in a common disaster, the insured will be presumed to have survived the primary beneficiary and the proceeds of the policy will be paid to the contingent beneficiary, or if none is named, then to the estate of the insured.

Your client V is 73 and retired, with minimal assets and only a small income. She is concerned about nursing home costs as she becomes older. Which of these programs could pay for V's nursing home costs?

medicaid

Viatical settlements

occur when a terminally ill insured/owner sells his/her policy to a third party for less than the death benefit, but more than the cash values, in order to obtain funds when no other sources are readily available.

Enforceable contracts must include:

offer and acceptance, consideration (exchange of value), competent parties, and legal purpose. Authority is not considered one of the elements of a legal contract.

How often may a person perform a rollover from one IRA to another?

once every 12 months

Outpatient services for medicare

only under part b; also known as the medical insurance of medicare

Single Premium Immediate Annuity payment

payment of a single sum to the insurer with periodic payments commencing within one year of deposit of the sum.

A Joint Survivorship Life Policy

pays the death benefit upon the death of the last insured to die. This policy is often purchased to provide a lump sum benefit to pay estate taxes once the second spouse dies.

Partnership program provisions

protect policyholders who apply for Medicaid after exhausting insurance coverage, meaning the Partnership assets are exempt from Medicaid claims.

A Limited Accident Policy

provides benefits for accidental injuries associated with specific events--such as foreign travel or while on a common carrier like an airplane or cruise ship.

Under the Patient Protection and Affordable Care Act, rates are strictly based on ____ and the ______ of the insured.

regional costs and age

Dental expense insurance deductibles are normally waived for

routine preventive care, exams, and/or cleaning.

A Medical Expense Policy's list of the amounts the insurer will pay for each medical service is known as a(n) __________.

schedule of benefits

If an individual is age 65 or over and continues to work, Medicare is usually the _________ insurer to any employer group health plan the individual participates in.

secondary

Other Insurance With This Insurer

stipulates that if the insured has more than one policy of the same type with the same insurer, the insured may elect the policy to be used, and excess premiums for the excess coverage will be returned.

Nonpublic personal information obtained in connection with a life settlement contract is subject to which applicable law relating to confidentiality of non-public personal information, including?

subject to the Gramm-Leach Bliley Act, HIPAA, and all other applicable laws relating to confidentiality of nonpublic personal information.

If the insured lives to age 100 on an Ordinary Whole Life Policy

the face amount of the policy is paid to the owner of the policy. At age 100 the cash value equals the face value. and the policy endows; In the beginning there is no cash value and is all insurance protection

Double Indemnity Rider/Accidental Death Rider provides 2 times face value if

the insured dies as a result of an accident within 90 days

A limited pay life policy:

the insured policyowner pays premiums for a specified time period or until a specified age, and the insurance protection continues throughout his or her life or until endowment at age 100, whichever comes first.

Rehabilitation benefits,

total disability benefits are continued as long as the insured is actively participating in the training program and remains totally disabled.

The contract type in which only one party is legally bound to its contractual obligations after a premium is paid is a(n)_______ contract.

unilateral

When it comes to life insurance, insurable interest on one's own life is:

unlimited

MIB (Medical Information Bureau)

used to alert underwriters if there is an inconsistency in the applicant's information provided on the application based on previous underwriting. It does not include financial information or credit scores.

Paid-up Additions

uses her dividends to purchase single premium additional permanent benefits at her attained age.

Cost of Living Adjustment 'COLA' rider

uses increasing term insurance that increases as the CPI increases. Adjustments are normally made each anniversary and require premium adjustments to pay for the increases.