LAH - Life Insurance Policy Provisions, Riders and Options (4)

Accelerated Benefit _______ the benefits paid to the beneficiary

Decreases

What is the waiting period on a Waiver of Premium rider in life insurance policies?

6 months

If a children's term rider is attached to a life insurance policy, children can convert to a new policy without having to issue proof of ___________________

Insurability

What would be an advantage to naming a contingent (or secondary) beneficiary in a life insurance policy

It determines who receives the policy benefits if the primary beneficiary is deceased

A spouse term rider is usually ______ term insurance

Level term

What describes attachments made to policies that either add or modify coverage

Riders

What kind of policy allows withdrawls or partial surrenders?

Universal life

The policy loan option is only found in policies that contain...

Cash value

The validity of coverage under a life insurance policy may not be contested, except for nonpayment of premium, after the policy has been in force for at least ___ years

2

What protects the insured from an unintentional policy lapse due to a nonpayment of premium

Automatic premium loan

Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner?

Cash surrender

When a policyowner designates a group of individuals as the beneficiary of a life insurance death benefit without specifically naming the individuals, this is called...

Class designation

Which rider, when attached to a permanent life insurance policy, provides an amount of insurance on every family member

Family term rider

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled

Payor benefit

The Accidental Death Rider...

Pays 2 or 3 times the face amount if death is the result of an accident as defined in the policy and occurs within 90 days of such an accident