Life Policy Riders
Which of the following statements best describes the effect the Accelerated benefit provision would have on the benefits paid to the beneficiary?
It will decrease the benefits paid to the beneficiary
All of the following topics may be included in the continuing education requirement for long-term care insurance except:
Sales techniques and overcoming client objectives in the purchase of long-term care insurance
The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called
Waiver of Premium
Guaranteed Insurability Rider
Allows the insured to purchase additional disability income coverage at future dates regardless of insurability.
A long stretch of national economic hardship causes a 7% rate of inflation. Devonne notices that the face value of her life insurance policy has been raised 7% as a result. What is the name of the provision that caused this change?
Cost of loving rider
All the following are features and requirements of the Living Needs Rider EXCEPT
Diagnosis must indicate that death is expected within 3 years - the Living Needs Rider provides for the payment of part of the policy death benefit if the insured is diagnosed with terminal illness that will result in death within 2 years
An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?
Guaranteed insurability option. The guaranteed insurability option allows the insured to purchase specific amounts of additional insurance at specific times without proving insurability.
Disability Income Benefit rider
Monthly premium waiver and monthly income
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?
$100,000
What is the waiting period for Waiver of Premium rider?
6 months
A provision in a life insurance policy that provides for the early payment of some portion of the policy face amount should the insured suffer from a terminal illness or injury is called
Accelerated Benefit Provision
Which of the following statements is true concerning the accidental death rider?
It will pay 2 or 3 times the face amount if death is the result of an accident and occurs within 90 days of such an accident.
An insured purchased a 15-year level term life insurance policy with a face amount of $100,000. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. What amount would his beneficiary receive as a settlement?
$200,000. The beneficiary would most likely receive twice the face value of the policy, since his fatal injuries were caused by an accident and he died within the 90-day benefit limit stipulated in most policies.
