All Of These Are Settlement Options For Life Insurance Except
Question: Mortality is calculated by using a large risk pool of
hobbies and time
people and time
family history and geographical area
insurance companies and agents
Answer: people and time
Question: Which of these factors help determine an insured’s life insurance premium?
insured’s salary
marital status
place of residence
avocation (hobby)
Answer: avocation (hobby)
Question: Tonya has replaced her whole life policy with an annuity without incurring a tax penalty. This transaction is called a(n)
Modified Exchange
Endowment Exchange
1040 Exchange
1035 Exchange
Answer: 1035 Exchange
Question: Proceeds from a life insurance policy are protected from the beneficiary’s creditors by which clause?
protection clause
creditor clause
spendthrift trust clause
beneficiary trust clause
Answer: spendthrift trust clause
Question: A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the
estate of the insured only
estate of the deceased beneficiaries only
named contingent beneficiaries only
named living primary beneficiaries
Answer: named living primary beneficiaries
Question: How does life insurance create an immediate estate?
Cash value may be borrowed upon at any time
Nonforfeiture options are immediately available
The insured’s estate receives the death benefit
After first premium is paid, the face amount may be available to the beneficiary
Answer: After first premium is paid, the face amount may be available to the beneficiary
Question: An example of naming a beneficiary by class would be
“To the children born of my union with Ned Jackson: David Jackson, Jennifer Jackson, and Scott Jackson”
“To the child born of my union with Ned Jackson: Scott Jackson”
“To the children born of my union with Ned Jackson”
“To Ned Jackson”
Answer: “To the children born of my union with Ned Jackson”
Question: All of these are settlement options for life insurance policies EXCEPT
Life income
Lump sum
Extended term
Fixed period
Answer: Extended term
Question: Sharon is the policyowner of a $50,000 life insurance policy. Her son, Mike, is the beneficiary. If Sharon MUST obtain Mike’s signature in order to change the beneficiary, what kind of beneficiary designation is this?
Tertiary
Contingent
Revocable
Irrevocable
Answer: Irrevocable
Question: Elizabeth is the beneficiary of a life insurance policy. She is receiving the death benefit in payments of $10,000 per month until the principal and interest has been paid out. Which option was chosen?
Fixed period
Fixed amount
Life income
Interest only
Answer: Fixed amount