Life and health ch 3

the interest is not taxable sincde it remains inside the insurance policy

Accumulation at interest option is

$100,000

The insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. It was determined that the accident was his fault. The triple indemnity rider in the policy specifies that the death must not be contributed to by the insured in any manner. In this case what will the policy beneficiary receive?

revocable beneficiary

a policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. she also wishes to retain all of the rights of ownership. the policyowner should have her husband named as the

insuring clause

what is the companys promise to pay

guaranteed insurablity option

An individual is purchasing a life insurance policy with a face value of $25,000. While this is all the insurane that he can afford at this time, he wants to be sure that additional coverage will be available in the future. What should be included in the policy?

reductionof premium, paid up additions, accumulated at interest

what are dividend options

if the primary beneficiary predeceases the insured

an insured purchased a life insurance policy on his life naming his wife as primary beneficiary, and his daughter as contingent beneficiary. under what circumstances could the daughter collect the death benefit?

guaranteed insurability rider

if a policy allow the policyowner to make periodic additions to the faced amount at standard rates without proving insurability the policy includes

to purchase a smaller amount of the same type of insurance as the original policy

the paid up addition uses the dividend

absolute and collateral

the two types of assignments are

the amoung of the outstanding loan and interest will be deducted from the poicy proceeds when the insured dies, the policy will terminate if the loan plus interest equals or exceeds the cash value of the policy, policyowners can borrow up to the full amount of their whole life policys cash value

what is true regarding insurance policy loans?

cost of living rider, accidental death rider, and guranteed insurability rider

what would cause the death benefit to increase

policyowner

who can request changes in premiums payments, face value, loans, and policy plans?

reduction of premium

an insured pays $1200 annually for her life insurance premium. The insured applies this years $300 worth of accumulated dividends to the next years premium thus reducing it to $900 what option does this describe?

consideration

an insured pays an annual premium to his insurer. In return the insurer promises to pay benefits in accordance with the terms of the contract. this is called