Life insurance premiums, proceeds, and beneficiaries

A policyowner is able to choose the frequency of premium payments through what policy feature?

Premium mode

Which premium schedule results in the lowest cost to the policyowner?

annual

A policyowner is allowed to pay premiums more than once a year under which provision?

mode of premium

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

Which of the following best describes a contingent beneficiary?

Person designated by the insured to receive policy proceeds in the event that the primary beneficiary dies before the insured

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

T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismemberment policy insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive?

The correct answer is "$0". The mother receives $0 because T is still alive and the sole primary beneficiary, while the mother is still the contingent beneficiary.

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

Which statement regarding the Change of Beneficiary provision is true?

The policyowner can change the beneficiary

When can a policyowner change a revocable beneficiary?

anytime

K has a life insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed?

daughter

On a life insurance policy, who is qualified to change the beneficiary designation?

policy owner

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

What is the underlying concept regarding level premiums?

the early years are charged more than what is needed