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Life Insurance Policies - Provisions, Options and Riders 1

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Under a Modified Endowment Contract, what are the likely tax consequences?
Interest on policy loans is tax deductible
Premium payments are tax deductible
Pre-death distributions will become taxable
Cash value cannot be surrendered early
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Terms in this set (52)
Under a Modified Endowment Contract, what are the likely tax consequences?
Interest on policy loans is tax deductible
Premium payments are tax deductible
Pre-death distributions will become taxable
Cash value cannot be surrendered early
Pre-death distributions will become taxable
The statement which best describes the relationship between the premiums of a whole life policy and the premium payment period is
The shorter the payment period, the lower the premium
The longer the payment period, the higher the premium
The shorter the payment period, the higher the premium
The payment period has no affect on the premium payment
The shorter the payment period, the higher the premium
Which of these riders will pay a death benefit if the insured's spouse dies?
Guaranteed Insurability rider
Family term insurance rider
Family whole insurance rider
Payor benefit rider
Family term insurance rider
All of these are characteristics of a universal life insurance policy EXCEPT
Flexible death benefit
All of these are characteristics of a universal life insurance policy EXCEPT
Flexible death benefit
Fixed surrender value
Flexible premiums
Builds cash value
Fixed surrender value
Variable life insurance and Universal life insurance are very similar. Which of these features are held exclusively by variable universal life insurance?
Policyowner may increase or decrease the premium payments
Policyowner may increase or decrease the face amount
Policyowner can contribute large sums of money
Policyowner has the right to select the investment which will provide the greatest return
Policyowner has the right to select the investment which will provide the greatest return