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Premiums and benefits

Terms in this set (14)

When can a policyowner change a revocable beneficiary?
Anytime
On a life insurance policy, who is qualified to change the beneficiary designation?
Policyowner
A primary beneficiary has died before the insured in 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
Which premium schedule results in the lowest cost to the policyowner?
Annual
A whole life insurance policyowner does not wish to continue making premium payments. Which of the
following enables the policyowner to sell the policy for more than its cash value?
Life settlement contract
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
J would like to maintain the right to change beneficiaries. Which beneficiary designation should be
used?
Revocable
A(n)
beneficiary.
beneficiary may be changed by the policyowner WITHOUT the consent of the
Revocable
What is the underlying concept regarding level premiums?
The early years are charged more than what is needed
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?
$0
A policyowner is able to choose the frequency of premium payments through what policy feature?
Premium Mode
Question 14
Select the appropriate response
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
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