Life insurance premiums, Proceeds and Beneficiaries
Which statement regarding the change of beneficiary provision is true
The policy owner can change the beneficiary
A level premium indicates :
The premium is fixed for the entire duration of the contract
Which premium schedule results in the lowest cost to the policy owner
Annual
When can a policy owner change a revocable beneficiary
Anytime
She is the policy owner for a life insurance policy with an irrevocable beneficiary designation. If he wishes to change the beneficiary Simas obtain permission from the
Beneficiary
which of the 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
On a life insurance policy who is qualified to change the beneficiary designation
Policy owner
Who has the right to change a revocable beneficiary
Policy owner
.K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K-D's 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
A primary beneficiary has died before the insured and a life insurance policy. A contingent beneficiary is also named in the policy. Which of the following will occur when the insured dies
Proceeds will go to the contingent beneficiary
T is covered by an accident of death and its memberment policy that has an irrevocable beneficiary. What action will the interest company take if teeth request a change of beneficiary
Request of the change will be refused
A ___ beneficiary may be changed by the policy owner without the consent of the beneficiary
Revocable
Which of these statements is incorrect regarding the federal income tax treatment of life insurance
Entire cash surrender value is taxable
Quarterly premium payments increase the annual cost of insurance because
Entrance to the insurer is decrease while the administrative costs are increased
How would a contingent beneficiary receive the policy proceeds in an accidental death and dismemberment policy
If the primary beneficiary dies before the insured
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
Which statement is true regarding a minor beneficiary
Normally a guardian is required to be appointed in the Beneficiary clause of the contract
P and Q are married and have three children. P is the primary beneficiary on cues accidental death and dismemberment policy and Q sister are is the contingent beneficiary. P, Q, and R are involved in a car accident in Q and are instantly killed. The accidental death benefit will be paid to
P only
A policy owner is able to choose the frequency of premium payments through what policy feature
Premium mode
Which of the following statements is correct regarding the tax treatment of a lump sum payment paid to a life insurance policies primary beneficiary
All proceeds are income tax free in the year they are received
And purchase an accidental death and dismemberment policy and named his son as beneficiary. M has the right to change of beneficiary designation at any time what type of beneficiary is his son
Revocable
Jay would like to maintain the right to change beneficiaries which beneficiary designation should be used
Revocable
What is the underlying concept regarding level premiums
The early years are charge more than what is needed
Jay 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
T and S are named co-primary beneficiaries on a 500,000 accidental death and dismemberment policy ensuring their father. Their mother was named contingent beneficiary. Five years later S dies of natural causes in the father is killed in a scuba accident shortly afterwards. How much of the death benefit with the mother receive
$0
___ of personal life insurance premiums is usually deductible federal income tax purposes
0%
K has a life insurance policy where husband is beneficiary and her daughter is consgent beneficiary. Under the common disaster clause if Kate and her husband are both killed and an automobile accident where would the death proceeds be directed
Daughter
The common disaster clause provide that in both the insured and the soul name beneficiary where to die in a common accident which of the following is true
Disaster clause provides the payment of proceeds to the insured estate
A policy owner 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
A policy owners rights are limited under which beneficiary designation
Irrevocable
Which type of life insurance beneficiary requires his consent when a change of beneficiary is attempted by the policy owner
Irrevocable beneficiary
Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary
Life income
A whole life insurance policy owner does not wish to continue making premium payments. Which of the following enables the policy owner to sell the policy for more than a cash value
Life settlement contract
A policy owner is allowed to pay premiums more than once a year under which provision
Mode of premium
Which of these is not an element of life insurance premiums
Morbidity rate
C is trying to determine whether to convert her convertible term life policy the whole life insurance using her original age or a teen age. What factor would affect her decision the most
The cost
