Life Policies, Riders and Options...Q2

What is the waiting period on a Waiver of Premium rider in life insurance policies?

• 30 days

• 3 months

• 5 months

• 6 months

Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid?

• Insuring clause

• Entire contract clause

• Beneficiary clause

• Consideration clause

All of the following are TRUE regarding insurance policy loans EXCEPT

• Policy loans can be made on policies that do not accumulate cash value

• The amount of the outstanding loan and interest will be deducted from the policy proceeds when the insured dies.

• The policy will terminate if the loan plus interest equals or exceeds the cash value of the policy.

• Policy owners can borrow up to the full amount of their whole life policy's cash value.

What required provision protects against unintentional lapse of the policy?

• Reinstatement

• Grace period

• Assignment

• Payment of premiums

An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?

• $20,000

• $25,000

• $50,000

• The face amount will be determined by the insurer.

The type of settlement option which pays throughout the lifetimes of two or more beneficiaries is called

• Joint and survivor.

• Fixed period.

• Fixed amount.

• Joint life.

Under which of the following circumstances would an insurer pay accelerated benefits?

• A couple is nearing retirement and needs a steady stream of income.

• An insured is looking for a way to put her daughter through college.

• A couple wants to build a house and would like to make a larger down payment.

• An insured is diagnosed with cancer and needs help paying for her medical treatment.

If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10yrs before being exhausted, what settlement option should the beneficiary select?

• Interest only

• Fixed period

• Life with period certain

• Fixed amount

Which of the following, when attached to a permanent life insurance policy, allows the policy owner to customize the policy to provide an additional amount of temporary insurance on the insured, or allows amounts of temporary insurance to cover other family members?

• Term rider

• Accidental death and dismemberment rider

• Guaranteed insurability rider

• Change of insured rider

Which of the following statements is TRUE concerning the Accidental Death Rider?

• This rider is only available to insureds over the age of 65.

• It is only available in group insurance.

• It will pay double or triple the face amount.

• It is also known as triple indemnity rider.