Questions and Answers
J would like to maintain the right to change beneficiaries. Which beneficiary designation should be used?
Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed?
Contingent beneficiary
What type of beneficiary is M's son in the Accidental Death and Dismemberment (AD&D) policy?
Revocable beneficiary
When can a policyowner change the beneficiary under the Change of Beneficiary provision?
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Which type of designation would allow a policyowner to change the beneficiary on a Life insurance policy and make the change permanent?
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Which statement is true regarding a minor beneficiary?
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What does a level premium indicate?
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A policyowner can choose the frequency of premium payments through what policy feature?
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Under which provision is a policyowner allowed to pay premiums more than once a year?
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In the event of a car accident involving P, Q, and R, who will the Accidental Death benefits be paid to?
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Study Notes
Beneficiary Designations
- Revocable beneficiaries allow the policyowner to change beneficiaries at any time without needing consent from the current beneficiary.
- Irrevocable beneficiaries require the policyowner to obtain consent from the designated beneficiary before making changes.
Common Disaster Clause
- If a policyholder and primary beneficiary die simultaneously in an accident, the contingent beneficiary will receive the death proceeds.
Minor Beneficiaries
- When designating a minor as a beneficiary, a guardian must be appointed to manage the benefits until the minor reaches adulthood.
Accidental Death and Dismemberment Policy
- A beneficiary named under an Accidental Death and Dismemberment (AD&D) policy can be changed by the policyowner at any time if designated as revocable.
Premium Payments
- A level premium means that the insurance premium remains constant throughout the entire policy duration.
- Policyowners can select the frequency of premium payments (e.g., monthly, quarterly, annually) through the Premium Mode feature.
- The mode of premium allows policyowners to pay their premiums more than once a year.
Benefits Distribution Example
- In a scenario where a primary beneficiary survives, the death benefits will be allocated to them, even if the contingent beneficiary has died in the same incident.
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Description
This quiz covers essential concepts related to life insurance premiums, proceeds, and beneficiaries. Engage with flashcards that help you understand various beneficiary designations and the implications of different scenarios under life insurance policies.
