What is the percentage of personal life insurance premium is usually deductacle for federal income tax?
answer
0%
question
Which settlement option pays a stated amount to an annuitant, but no residual value to beneficiary?
answer
Life income
question
Which of the following best describes a contingent beneficiary?
answer
a person designated by the insured to receive policy proceeds in the event that the primary beneficiary dies before the insured.
question
Quarterly premiums payment increase the annual cost of insurance because
answer
interest to the insurer is decreases while the administratice costs are increased
question
K has a life insurance policy where her husband is the beneficiary and her daughter is the contingent beneficiary. Under Common Disaster clause, if K and her husband where killed in a automobile accident, where would the death proceeds be directed?
answer
Daughter
question
A whole life insurance policyowner does not wish to continue making premium payments. Which of the following enable the policyowner to sell policy for more than cash value?
answer
Life settlement
question
c is trying to determine whether to convert he convertible term life policy to whole life insurance using her original age or attained age. What factor would affect her decision the most?
answer
the cost
question
How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy?
answer
If the primary beneficiary dies before the insured
question
J chooses a monthly premium payment mode on his Whole Life insurance policy. Which of these statements are correct?
answer
The gross premium is higher on a monthly payment mode as compared to being paid annually
question
A policyowner is able to choose the frequency of premium payments through what policy feature?
answer
Premium mode
question
What kind of life insurance beneficiary requires his/her consent when a change of beneficiary is made?
answer
irrevocable beneficiary
question
Which premium schedule results in the lowest cost to the policyowner?
answer
Annually
question
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?
answer
Proceeds will be payable to K's estate if P dies within a specific time
question
On a life insurance policy, who is qualified to change the beneficiary designation?
answer
the policy owner
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