which of these nonforfeiture options continue

The policyis calculatedfrom the insureds attained age. B) Purchase additional coverage with no evidence of insurability required An investment ? A) Entire contract provision "Standard nonforfeiture law for life insurance.". B) A return of excess of premium and fully taxable A) Reduction of premium dividend option All of the following statements are true EXCEPT, A) Mikes policy will develop no cash value over the policys term Coverage will be adjusted to reflect the insureds true age if a misstatement of age is discovered A) Contest the terms of the policy after the issue date Borrow against policy cash value and use as a down payment Which of these statements about a Guaranteed Insurability . A) Cash surrender B) 1/2 of the policys face amount A. A. Mike buys a 10-year renewable term policy. A) Cash surrender We are building a transparent, customer-powered platform for real people to learn about and buy insurance including auto, home, and renters, with helpful information about pet and life insurance, too. D) is injured in a skiing accident and dies 18 months later. C) The insurers obligation to pay a death benefit upon an approved death claim Thanks for choosing us. C) the source of funding for administration fees Modify a provision in the insurance contract For example, if you purchase a policy when you were 20 and you paid until age 55, you would receive a term policy that is less than 35 years. D) the protection ends. Leslie has been quoted in publications that include Readers Digest, Fox Business, and the Washington Post. Term vs. B) Extended term insurance When the owner of whole-life insurance policy surrenders thepolicy, they have several nonforfeiture options. a. Paid-up additions b. If these options are important to you, you will need to compare quotes from multiple life insurance companies in your area to find the insurer with the right policy. D) hazardous occupations. D. Allows the policyowner to adjust the death benefit and premium amount at anytime, A. D. Level, F needs life insurance that provides coverage for only a limited amount of time with a death benefit that changes regularly according to a schedule. Long-term care and long-term disability policies may also have nonforfeiture options. A) Waiver A. A) dividend option B) settlement option C) nonforfeiture option D) interest-only optionC) nonforfeiture option. B) Changes in the insuring clause A. A) Payment mode D. 20-Pay Life and Straight Life accumulate cash value at the same rate, B. D) $4,000 You can get your paper edited to read like this. D) Full face amount. Of the following dividend options, which of these is taxable? Assignment D) A return of excess premium subject to capital gains tax, C) A return of excess premium and not taxable, All of the following riders can increase the death benefit amount EXCEPT, A) Cost of Living If you want to keep your whole life insurance policy, choose a reduced paid-up nonforfeiture option. To compare quotes from many different insurance companies please enter your ZIP code on this page to use the free quote tool. Non-Forfeiture Option or " NFO " means an option to exchange an existing LTC policy for a reduced paid up contract on which no future premiums need be paid by the policyholder but under which benefits are limited to premiums previously paid less benefits previously received. C) waiting period What action will the insurer take? D. Name bank as beneficiary, Which of these provisions require proof of insurability after a policy has lapsed? D) A loan can be taken out for up to the face amount of the policy, A) Net death benefit will be reduced if the loan is not repaid, Life insurance policies will normally pay for losses arising from, A) commercial aviation D. Modified Whole Life, S is close to retiring and would like to purchase a policy that will yield greater gains than bonds, but will still protect the principal with a minimum level or risk. A. C. Accelerated Benefits provision D. The 7-pay test is used to determine the maximum death benefit of the policy, B. B) Payor rider Which of the following is the process of getting oxygen from the environment to the tissues of the body? A. A death benefit will NOT be paid in which of the following circumstances? C) nonforfeiture option. A. However, term life insurance only lasts for a set period. If the consumer price index has gone up 4%, how much may Ron increase the face value of the policy? Or if you were 35 when you purchased your policy and you paid until you were 45, you would receive a term policy less than 10 years. A) Increases the policys cash value Which dividend option would an insurer invest the policyowners money and add any interest earnings as the dividends accrue? Utilize accelerated benefits provision A) Proof of insurability C) Address What is the name of the provision which states that a copy of the application must be attached to the policy when issued? Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. Legally, nonforfeiture options protect policyholders from losing life insurance coverage for missed payments. Which of these describe a participating life insurance policy? B) $800 What are collateral assignments normally associated with? Allows payor to increase face amount without providing evidence of insurability D) Grace period provision. These options are available with whole life insurance, long-term disability coverage, and long-term care insurance. Company pays twice the face amount under the double indemnity clause Feel free to get in touch with us via email. B) The insurer withholds the cost basis There are three main types of nonforfeiture options: cash surrender, paid-up insurance, and extended term D) Period of time after the premium is due but the policy remains in force, D) Period of time after the premium is due but the policy remains in force, All of these are common exclusions to a life insurance policy EXCEPT, A) accidental death C. An insurers required reserve amount Level term policy Comparison shopping should be easy. B. additional Term Life coverage at specified intervals C) Accidental Death Rider A life insurance policyowner was injured in an automobile accident which results in a total and permanent disability. a) A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. D. is blinded in an accident, How do life insurance companies handle cases where the insured commits suicide within the contracts stated Contestable period? A) extended term A. Which of the following is CORRECT regarding the death benefit amount? D. Living Benefit, The automatic premium loan provision is designed to C) It allows for cash advances to be paid against the death benefit if the insured becomes terminally ill C) policy and any verbal agreements B. an insurance product only Automatic Premium Loan provision B. C) Return of premium D and his wife divorce and D remarries, transferring ownership of his policy to his new wife. -Coverage can be added at specific ages. A. cancel the policy if not paid within the grace period C) 3/4 of the policys face amount D. Change the beneficiary, if revocable, B. C) Accelerated death benefit Who would not be able to receive the death benefit directly from the insurer in the event of the insureds death? A) Policy Summary C) resubmit a new life insurance application Diffusion Let us complete them for you. C) Extended term option Beneficiary will be paid the Death Benefit. Modification Social Science Business Insurance Chapter 3-4 which of these statements about a Guaranteed Insurability Option rider is NOT TRUE Click the card to flip evidence of insurability is required when the option is exercised Click the card to flip 1 / 19 Flashcards Learn Test Match Created by Stopaskingthisisdumb A) Insured becomes unemployed C. Accelerated death benefit D. Payor benefit, Variable Whole Life Insurance can be described as B. A. For some companies, this option may be automatic when surrendering a whole life insurance policy. D. Life Income, What does the ownership clause in a life insurance policy state? Reduced Paid-up B) Nonforfeiture C) suicide B. $500,000. Extended Term A) $400 B) $800 C) $2,000 D) $4,000. D. Premiums are waived if payor becomes disabled, D. Premiums are waived if payor becomes disabled, D is the policyowner and insured for a $50,000 life insurance policy. D. Incontestable period, A life policy with a death benefit that can fluctuate according to the performance of its underlying investment portfolio is referred to as C. Deposit Term insurance B) Juvenile waiver D) Payor benefit. Grace period D) Family income rider. D) Conditions. Which of these features would limit the insurers obligation in the event N was killed while flying as a student pilot? What is an insurer required to do when faced with an error made under the Misstatement of Age provision? C. Claim will be partially paid D) Beneficiary. However, any money you take out will be deducted from the death benefit that goes to your beneficiaries. What are the three nonforfeiture options? Our opinions are our own. A) A return of excess premium and partially taxable A. Surrendering the policys cash value Ron has a life insurance policy with a face value of $100,000 and a cost of living rider. Who the policyowner is and what rights the policyowner is entitled to Extended Term C. at future dates specified in the contract with no evidence of insurability required D) Life income annuity. D. Interest-Sensitive Whole Life, Under a Renewable Term policy, D. nonforfeiture value, A provision in a life insurance policy that pays the policyowner an amount that does not surpass the guaranteed cash value is called the C. the renewal premium is calculated on the basis of the insureds attained age D) Extended term rider, In a life insurance policy, the entire contract consists of, A) policy and conditional receipt D) experiencing financial hardship. D. Adjustable Life, A Family Income Policy is a combination of Whole Life and D) Settlement options. A. Quickly and professionally. D) nonforfeiture provision, A whole life insurance policy accumulates cash value that becomes, A) the policy loan value which the insured may borrow against An insurers basic promise Life Paid-Up at Age 70 Yes, policyholders can also choose to convert the policy to an annuity. What is the purpose for having an accelerated death benefit on a life insurance policy? C) pay past due premiums, agree to new incontestable period C. Ejection C. a securities product only D) Grace period, All of these are standard exclusions found in a life insurance policy EXCEPT, A) hazardous occupations A) The agents obligation to provide the proper amount of coverage Long Term Care B. A. Which of the following statements is true? In some states,like New York, long-term care and disability insurance policies must have nonforfeiture clauses. A) Reduce premium If you have universal or variable life insurance, your cash surrender value may be worth more based on investments. C. Child A. Your life insurance quotes are always free. The annuity amount is determined by the cash value of the policy and the policyholders age. B) the policy would be payable only after the beneficiary makes past due premium payment D. Split equally between the ex-wife and current wife, What action can a policyowner take if an application for a bank loan requires collateral? Exceeds the maximum amount of premium that can be paid into a policy and still have it recognized as a life insurance contract, What type of life insurance are credit policies issued as? A) Period of time after the initial premium is paid and before the policy is issued Instead, you can access your accumulated cash value with the following options: If the policyholder does not make a selection, the terms of the policy will generally stipulate which option would go into effect if the policy lapses or is surrendered. C. Automatic premium loan B) Face amount of the new policy equals that of the original policy Business Insurance Chapter 3 (part 2) 4.9 (51 reviews) When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? D) revoke an absolute assignment. B) Waiver of Premium B. Which of these life insurance riders allows the applicant to have excess coverage? A. Azanswer team is here with the correct answer to your question. D. Return of premium policy, A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. B) Free-look period The amount of cash value you will have built-in your policy will be reduced by the amount of any loans against your life insurance. If an insureds age on a life insurance policy has been misstated, what is the insurers liability if the insured dies? Which product would S be advised to purchase? P is the insured on a participating life policy. C. Universal Life Premiums are payable for a set period/ coverage expires at that point B) The policy may be paid up early by using policy dividends D. Premiums are returned under the Consideration clause, A. Which rider would pay a monthly amount because of this disability? Nonforfeiture clauses offer protection in the event a policyholder stops paying their premium. When a policyowner exchanges a term policy for a whole life policy without providing proof of good health, which of these apply? Depending on the age of the policy, the cash surrender value could be less than theactual cash value. C. Reduced Paid-Up. A) The policy may be paid up early by using accumulated cash values Modify a provision in the insurance contract, N is a student pilot with a large life insurance policy. D) Income, A life insurance policy normally contains a provision that restricts coverage in the event of death under all of the following situations EXCEPT, A) fare-paying passenger D) $4,000, A rider that assures premiums will be paid on a juvenile policy until the child reaches a specific age is called a(n), A) waiver of premium rider A. Adjustable Life C. Estate C. Deducted from policys cash value 11. C) Pay full benefits as stated in the policy C. Only when the insured dies D. Decreasing Term. B. Which statement is true if Ps premiums are waived due to a disability? C. Universal Life A) The policys cost basis is taxable C) Dividend schedule Cash surrender value applies to the savings element of whole life insurance policies. A nonforfeiture clause is an insurance policy clause stipulating that an insured party can receive full or partial benefits or a partial refund of premiums after a lapse due to non-payment. C. The investment vehicle for this type of policy is held in the insurers general portfolio Reinstatement A minor child of the insured. B. B) Period of time it takes for a policys underwriting to compete B. c. there may be a dollar limit on the maximum benefit. Required fields are marked *. Coverage and death benefits will remain intact as long as the cash value is equal to or exceeds the overdue amount. This rider is called a(n), A) Guaranteed insurability rider B. Decreasing Annuities pay regular payments as outlined in the contract. Credit Life D. Return of Premium, What action will an insurer take if an interest payment on a policy loan is not made on time? D) Allows the insured to convert a term life policy to whole life with no evidence of insurability, B) Purchase additional coverage with no evidence of insurability required, Loans obtained by a policyowner against the cash value of a life insurance policy, A) are treated as taxable income Long term care Automatic Premium Loan rider B. Waiver of Premium rider C. Guarantee Insurability rider D . D) Cash surrender. D. Joint, What kind of life insurance starts out as temporary coverage but can be later modified to permanent coverage without evidence of insurability? 20-Pay Life accumulates cash value faster than Straight Life A) The face amount and policy premium are not affected by the payment Which policy provision protects the policyowner from unintentional lapse of the contract? B. automatically add the amount of interest due to the loan balance A) No death benefit is owed because of the misstatement of age D. Their adopted child dies at age 18. When you were having a leisure time walk along one of the streets of Addis, you came across an adult person helping an elderly customer of a bank t Explain the different modes of engagement with international markets and explore the interconnectedness between these and the economic, legal, governm type of corporate social responsibility Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. Thanks for choosing us. C. Decreasing Term C) Term life policies are the only type of insurance that allows policy loans Since this value is receivable before death, it is also available as a nonforfeiture option. D) Provision. D) a source of funding a term rider to the policy, A) the policy loan value which the insured may borrow against. B) No interest will be charged on loan balance C. 1035 Exchange Extended-term insurance is often thedefault non-forfeiture option. Which of the following statements is TRUE? Let us have a look at your work and suggest how to improve it! D) the insured and beneficiary died at the same time. C. Collateral assignment Which of the following is NOT part of an insurance contract? C. contest a claim at anytime if the cause of death was accidental What is a nonforfeiture option in life insurance? Before issuing payment to the policy owner, outstanding loan amounts are satisfied with the cash value. In the early years of a policy, life insurance companies can deduct fees upon cash surrender. However, the cash value will not continue to grow once the option is exercised. When an accidental death benefit is added to a whole life policy, how does this affect the policys cash value? B) Cash Dividend Option Unpaid interest will be added to your loan amount and will be subject to compounding. D. Increasing Term insurance, Life insurance that covers an insureds whole life with level premiums paid over a limited time is called Exclusion. A double indemnity benefit will be payable to Matts beneficiary if Matt, A) is killed while committing a felony D) war. B) Grace period A. A nonforfeiture clause is an insurance policy clause stipulating that an insured party can receive full or partial benefits or a partial refund of premiums after a lapse due to non-payment. B. D) Policy loans will no longer be available. In other words, even if the policyholder stops paying premiums, the coverage will continue until the insured's death. D) Nonforfeiture clause. D) A dividend option is selected by the insured at the time of policy purchase, D) A dividend option is selected by the insured at the time of policy purchase. C. Graded whole life policy C. Cost of Living If youre looking for the nonforfeiture option with the highest death benefits and most insurance protection, choose the extended term nonforfeiture option. D. Spouse, The Accidental Death and Dismemberment (AD&D) provision in a life insurance policy would pay additional benefits if the insured However, surrendering a portion of the cash value reduces thedeath benefit. D. premium payments that are paid to age 100, C. premium payments limited to a specified number of years, The Consideration clause in a life insurance contract contains what pertinent information? Learn Test Match Created by jrstxusa Terms in this set (20) Which of the following statements about accumulated interest earned on dividends from an insurance policy is true? B. disallow a change of beneficiary during the Contestable period The correct answer is: Paid-up additions Rick is planning on getting married next month. This value is payable before death. An adjusted premium is the premium of a life insurance policy that is adjusted by amortizing the costs associated with acquiring the insurance policy. A. the face amount is automatically adjusted at the time of renewal D) accidental death. In this case, you will opt for reduced death benefits with no additional monthly payments. Summary of benefits C) Cash value is surrendered to policyowner D. additional Whole Life coverage at specified times, D. additional Whole Life coverage at specified times, In a life insurance policy, which feature states that the policy will not cover certain risks? Whole Life Void the policy, no matter when it is discovered A) Accidental death rider Variable Life C) Settlement options The clause may involve returning some portion of the total premiums paid, the cash surrender value of the policy, or a reduced benefit based upon premiumspaid beforethe policy lapses. C) reinstatement provision The cash value will continue to increase. C) Provides for the early payment of some portion of the policy face amount should be insured suffer from a terminal illness Those on Social Security disability automatically qualify for this benefit C) Riders A practical guide for understanding car insurance, Top 5 things you should know about your renters insurance, Nonforfeiture options are available with whole life insurance, long-term disability coverage, and long-term care insurance, Nonforfeiture options protect policyholders from losing life insurance coverage for missed payments, Policyholders can choose from three common types of nonforfeiture options. A) Net death benefit will be reduced if the loan is not repaid Rob purchased a standard whole life policy with a $500,000 death benefit when he was age 30. Policyholders may also choose to use the cash value as a premium loan for the missed payments. The death benefit would be equal to the benefit in the original whole life insurance policy. Most life insurance companies will allow policyholders to surrender a policy for its cash value or exchange it for a paid-up or extended term life insurance policy. Family Maintenance policy Much like the paid-up option, this route gives policyholders the chance to use the cash surrender value and buy a term life insurance policy. C. Ownership cannot be assigned after the incontestable period C) Ike will have a level premium D) Mike has the option of using his cash value to purchase a reduced amount of paid-up whole life insurance, D) Mike has the option of using his cash value to purchase a reduced amount of paid-up whole life insurance. B) Extended term option Conversion provision Which military service exclusion clause would pay upon his death? A) Payor options B. The insurance company guarantees a minimum cash value for the insurancepolicy after a specific period, typically three years from when the policy starts. D. Waiver of Premium, A. A. Falls below the minimum amount of premium that can be paid into a policy and still have it recognized as a life insurance contract The policyholder may use the policy's cash value to get extended term insurance coverage thanks to the extended term insurance nonforfeiture option. B. Do I need umbrella insurance? D) Premium decrease. Universal life (UL) insurance is permanent life insurance with an investment savings component. Allows payor to assign ownership in the event payor becomes disabled D) The policys cash values steadily decrease after 20 years, B) The policy may be paid up early by using policy dividends, A guaranteed issue insurance policy has no, A) initial premium requirement D. A single premium is paid at time of application/ coverage lasts until retirement, A. D) irrevocable assignment. Advertiser Disclosure: We strive to help you make confident insurance decisions. Tips to Negotiate a Totaled Car Settlement. D. Adjustable, What kind of life policy either pays the face value upon the death of the insured or when the insured reaches age 100? A) Long-term care rider Will your insurance policy cover your insurance claim? D) The benefit can be offered as a rider at a specific extra cost or may be at no cost, D) The benefit can be offered as a rider at a specific extra cost or may be at no cost. With extended-term insurance, the face amount of the policy stays the same, but it is flipped to an extended-term insurance policy. Requires that a new policy must be applied for if a misstatement of age is found on the current policy D. The death benefit can vary but the policyowner has no say in the premium amount paid, A. Policyowner controls where the investment will go and selects the amount of the premium payment, When is the face amount of a Whole Life policy paid? B. Quickly and professionally. If a policy owner chooses the cash surrender value option, the insurer will pay the remaining cash value within six months. C) There may be a dollar limit on the maximum benefit Parent C) Paid-up additions B. Endowment A. Policyowner controls where the investment will go and selects the amount of the premium payment Does Homeowners Insurance Cover a Flooded Basement? You can get your paper edited to read like this. Ike purchases a whole life policy. However, you may want to consider your budget and your familys needs if you plan to reduce your life insurance coverage. Kurt is an active duty serviceman who was recently killed in an accident while home on leave. C. 30-pay life D. Must have a terminal illness to qualify, D. Must have a terminal illness to qualify, Which of these Nonforfeiture Options continue a build-up of cash value? Only the policy owner has the ownership rights under the policy, and not the insured or the beneficiary. D. P cannot assign ownership of the policy while premiums are being waived, C. P will still receive declared dividends, Which of these are NOT an example of a Nonforfeiture option? There are no guarantees for the minimum amount of life insurance available in variable and universal life policies, which allow for variable investing. C. Adjustable 20-Pay Life accumulates cash value faster than Straight Life, Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? 1035 Exchange C) Nonforfeiture provision A. Endowment policy You must copy this code in its entirety without altering, modifying or redacting this code in any way, including removing any links, logos or the word Clearsurance from the image. A) Declarations Both are in excellent health. Enter your ZIP code below to start comparing life insurance quotes for free so you can find the best policy with the right nonforfeiture options for you. D. Insurer may void the policy if a misstatement of age is discovered, A. C. Grace Period C. Adjustable D) any surrender charges owed by the policyowner, B) past due premiums that have not been paid by the end of the grace period. This option allows you to keep your original coverage levels and benefits, just for a shorter period. Unlike conventional loans, policy loans don't necessarily need to be paid back. Which of these is NOT a characteristic of the Accelerated Death Benefit option? ", NAIC.org. C. Assign policy ownership to the bank Modified Whole Life D) provide a valid reason for the lapse, B) provide evidence of insurability to the insurer. B) Probation period C. Limited-pay policy Which statement is true if P's premiums are waived due to a disability? A) 12/15th of the policys face amount D. at any time while policy is active, C. at future dates specified in the contract with no evidence of insurability required, Which of the following statements about accumulated interest earned on dividends from an insurance policy is TRUE? B. A. They purchase a Family Policy that covers Ls spouse to age 65. How Cash Value Builds in a Life Insurance Policy. A) $ B) $ C) $2, D) $4,000 D) $4, B) pilot of personal airplane B. Waiver of Premium rider D) war, An insured individual and the policys beneficiary die from the same accident. D. Amount of premium payments and when they are due, D. Amount of premium payments and when they are due, Whose life is covered on a life insurance policy that contains a payor benefit clause? Learn more about what cash value life insurance is and how it works. E and F . C) Reduction of Premium B) dies of a stroke C. Credit Life C. does not guarantee a return on its investment accounts A. Limited-pay life Cash value plus interest These options are available with whole life insurance, long-term disability coverage, and long-term care insurance.
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