Ch 5(c) Options

Front

A policyowner surrenders a whole life policy for a reduced paid-up policy. What will happen to the cash value?

Back

It continues to increase

Front

The insured pays $1200 annually for her life insurance premium. This year, she has accumulated $175 worth of dividends, which she applies to her next premium payment which will be $1025. Which dividend option has she chosen?

Back

Reduction of premium

Front

All the following are nonforfeiture options EXCEPT: Cash surrender value, Extended term, Reduced paid-up insurance.

Back

One-year term

Front

Which settlement option offers an unchanging amount of benefits until all proceeds are paid? Options: Fixed amount, Fixed period, Life income, Life with period certain

Back

Fixed amount

Front

If a policyowner borrows funds from the cash value of her policy and does not pay back the loan amount, how will a claim on the death benefit be paid?

Back

The death benefit paid to the beneficiary will be less the loan amount plus interest.

Front

Which nonforfeiture option allows for insurance with a lower face amount but coverage that will remain the same as the original policy?

Back

Reduced paid-up insurance

Front

Which dividend option allows for the purchase of additional permanent insurance? Options: Reduction of premium, Accumulate at interest, One-year term, Paid-up additions

Back

Paid-up additions