Podcast
Questions and Answers
What does paid-up addition option not affect in a participating policy?
What does paid-up addition option not affect in a participating policy?
- Only affect the cash value of the policy
- Don’t affect the loan or cash value of the policy (correct)
- Don’t affect the cash value of the policy
- Affect both cash and loan value of the policy
When the beneficiary of a life insurance policy is designated irrevocably, what must the policy owner obtain consent for?
When the beneficiary of a life insurance policy is designated irrevocably, what must the policy owner obtain consent for?
- Surrender the policy for its cash value
- Obtain a loan under the policy
- Name a different person to receive policy benefits (correct)
- Elect the extended term non-forfeiture option
What type of life policy would be suitable for someone who wants to be insured for life at the least annual cost until death?
What type of life policy would be suitable for someone who wants to be insured for life at the least annual cost until death?
- Endowment policy
- A whole life policy (correct)
- A 20-pay life policy
- A term policy
In a participating policy, what does the paid-up addition option primarily allow the policyholder to do?
In a participating policy, what does the paid-up addition option primarily allow the policyholder to do?
What happens to the cash value of a policy when paid-up additions are added?
What happens to the cash value of a policy when paid-up additions are added?
Flashcards
What does paid-up addition not affect?
What does paid-up addition not affect?
Paid-up additions don't affect the loan or cash value of a participating policy.
What must the policy owner get consent for with irrevocable beneficiary?
What must the policy owner get consent for with irrevocable beneficiary?
The policy owner must obtain consent to change the beneficiary if it's irrevocably designated.
What life policy provides lifetime coverage at the least annual cost?
What life policy provides lifetime coverage at the least annual cost?
A whole life policy provides lifetime coverage at a fixed premium, offering the lowest annual cost until death.
What does paid-up addition allow the policyholder to do?
What does paid-up addition allow the policyholder to do?
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What happens to cash value with paid-up additions?
What happens to cash value with paid-up additions?
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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.
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Description
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.
