M Purchased An Accidental Death

Question: When can a policyowner change a revocable beneficiary?

Answer: Anytime

Question: J would like to maintain the right to change beneficiaries. Which beneficiary designation should be used?

Answer: Revocable

Question: K has a life insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed?

Answer: Daughter

Question: M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as beneficiary. M has the right to change the beneficiary designation at anytime. What type of beneficiary is his son?

Answer: Revocable

Question:

Answer: 0

Question: How would a contingent beneficiary receive the policy proceeds in an Accidental Death and Dismemberment (AD&D) policy?

Answer: If the primary beneficiary dies before the insured

Question: A policyowner would like to change the beneficiary on a Life insurance policy and make the change permanent. Which type of designation would fulfill this need?

Answer: Irrevocable

Question: C is trying to determine whether to convert her convertible term life policy to whole life insurance using her original age or attained age. What factor would affect her decision the most?

Answer: The cost

Question: P and Q are married and have three children. P is the primary beneficiary on Q’s Accidental Death and Dismemberment (AD&D) policy and Q’s sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to

Answer: P only

Question: Which of these statements is INCORRECT regarding the federal income tax treatment of life insurance?

Answer: Entire cash surrender value is taxable