Life Insurance Policy Riders, Provisions, Options, and Exclusions

Life Insurance Policy Riders, Provisions, Options, and Exclusions Question Which of the following protects the insured from an unintentional policy lapse due to a nonpayment of premium? An individual is purchasing a permanent life insurance policy with a face value of $25k. this is all that he can afford , he wants to be sure that additional coverage will be available in the future. Which options should be included in the policy? Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid? When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount? An insured has chosen joint and 2/3 survivor as the settlement option. What does this mean to the beneficiaries? Answer Automatic premium loan Guaranteed insurability option Insuring clause Equal to the original policy for as long as the cash values will purchase. The surviving beneficiary will continue receiving 2/3 of the benefit paid when both beneficiaries were alive. An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof of insurability is Reinstatement provision provided. Which policy provision allows this? The validity of coverage under a life insurance policy may not be contested, except for nonpayment of premium, after the policy has been in 2 years force for at least how many years? Both the principal and interest will be Which of the following best describes fixed-period settlement option? liquidated over a selected period of time. Nonforfeiture values guarantee which of the following for the That the cash value will not be lost policyowner? All of the following are Nonforfeiture options EXCEPT Interest only Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the Paid-up option policy cash value to pay the policy up early? All of the following are dividend options EXCEPT Fixed-period installments. The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the Interest only option principal will be paid to their children when they reach a certain age. Which settlement option should the po An insured receives an annual life insurance dividend check. What term Cash option best describes this arrangement? When a life insurance policy was issued policyowner designated a primary n a cont beneficiary. years later, insured n the primary beneficiary died in The insured's contingent beneficiary the same car accident. it was impossible to determine who died first. Which would receive death benefit Which two terms are associated directly with the premium? All of the following are true regarding insurance policy loans EXCEPT Level or flexible Policy loans can be made on policies that do not accumulate cash value. The same face amount as in the whole life policy. Under an extended term nonforfeiture option, the policy cash value is converted to A policyowner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what Automatic premium loan provision?