5 Questions
What does paid-up addition option not affect in a participating policy?
Don’t affect the loan or cash value of the policy
When the beneficiary of a life insurance policy is designated irrevocably, what must the policy owner obtain consent for?
Name a different person to receive policy benefits
What type of life policy would be suitable for someone who wants to be insured for life at the least annual cost until death?
A whole life policy
In a participating policy, what does the paid-up addition option primarily allow the policyholder to do?
Increase the death benefit without increasing premium payments
What happens to the cash value of a policy when paid-up additions are added?
The cash value of the policy increases
Study Notes
Life Insurance Policies
- Paid-up addition option in a participating policy does not affect the basic policy.
- When designating a beneficiary as irrevocable in a life insurance policy, the policy owner must obtain consent from the beneficiary.
- A whole life insurance policy is suitable for someone who wants to be insured for life at the least annual cost until death.
- The paid-up addition option in a participating policy primarily allows the policyholder to use dividends to purchase paid-up additional insurance.
- When paid-up additions are added, the cash value of a policy increases.
Test your knowledge of traditional life insurance with this mock exam. Covering 62 items, this quiz includes questions on various policy options, features, and scenarios to help you prepare for the real exam. From different policy types to unique features, this quiz will challenge your understanding of traditional life insurance.
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