Life 3

Which of the following is not a life insurance settlement option?

• Short term options

• Extended term option p

Which of the following NOT an insurer policy expense?

• Premiums

• Prices

A creditor would be allowed rights to life a insurance policy proceeds if which of the following beneficiaries is chosen?

• The insured’s local

• The insured’s estate

How are death benefits that are received by a beneficiary normally treated for tax purposes ?

• Exempt from federal income taxes

• Increases

Pam is the primary beneficiary of a life insurance policy and wants to let the death benefit accumulate and receive only monthly investment proceed . Which settlement option should she choose?

• Interest option

• Retention options

Which of these is the automatic mode of settlement for life insurance policy proceeds?

• Lump-sum

• Deac

If the beneficiary dies from the same accident as the insured individual, the insured will proceed as if ?

• The insured outlived the beneficiary

• The insured died too

How does life insurance create an immediate estate ?

• After first premium is paid , the face amount may be available to the beneficiary

• Before the face amount

What happens to the total amount of premium paid for an insurance policy when the payment frequency increases?

• Increases

• Decreases

Premiums are best described as

• The amount an insured pay for prepayment

• The amount an insured pays per unit of coverage