Questions and Answers
What is a characteristic of both endowment and term life policies?
Insurance protection will be limited to a specified period
Which of the following is not a function of an application for a life insurance policy?
To give details pertaining to non-forfeiture options
What does a father need to appoint his son as in order to pass the life insurance policy on and protect him from Estate Tax Liability?
Irrevocable secondary beneficiary
In what scenario can a policy have an irrevocable beneficiary designated without the beneficiary's permission?
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Which type of life insurance policies provide a benefit at the end of the period of coverage if the insured is then alive?
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What is the main characteristic of both endowment and term life policies?
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Which of the following is not a function of an application for a life insurance policy?
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What does a father need to appoint his son as in order to pass the life insurance policy on and protect him from Estate Tax Liability?
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In what scenario can a policy have an irrevocable beneficiary designated without the beneficiary's permission?
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What type of life insurance policies provide a benefit at the end of the period of coverage if the insured is then alive?
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Study Notes
Life Insurance Policy Characteristics
- Both endowment and term life policies have a fixed period of coverage.
Application for Life Insurance Policy
- An application for a life insurance policy does not function as a contract.
Life Insurance Policy Beneficiary
- A father needs to appoint his son as an irrevocable beneficiary to pass the life insurance policy on and protect him from Estate Tax Liability.
- A policy can have an irrevocable beneficiary designated without the beneficiary's permission in the case of a minor child.
Type of Life Insurance Policies
- Endowment life insurance policies provide a benefit at the end of the period of coverage if the insured is then alive.
- Term life insurance policies do not provide a benefit at the end of the period of coverage if the insured is then alive, but rather only provide a death benefit.
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