Which Of These Ensures That Proceeds Of A Life Insurance

Question: The premium payment mode that results in the highest overall cost would be

A) monthly

B) quarterly

C) semi- annual

D) annual

Answer: A) monthly

Question: Naming a contingent beneficiary as “all surviving children” is described by which term?

A) Contingent designation

B) Primary designation

C) Class designation

D) Tertiary designation

Answer: C) Class designation

Question: A life insurance claim which involves a per capita distribution of policy proceeds would be payable to the

A) estate of the insured only

B) estate of the deceased beneficiaries only

C) named contingent beneficiaries only

D) named living primary beneficiaries

Answer: D) named living primary beneficiaries

Question: Which of these ensures that proceeds of a life insurance policy will be free from attachment or seizure by the beneficiary’s creditors?

A) Spendthrift Clause

B) Protection Clause

C) Viatical Clause

D) Settlement Clause

Answer: A) Spendthrift Clause

Question: Which of these premium payment frequencies is not typically available to a policyowner?

A) Bi-weekly

B) Monthly

C) Quarterly

D) Semi-annual

Answer: A) Bi-weekly

Question:

Answer: D) Income tax is typically not owned on proceeds paid directly to a beneficiary

Question: If the beneficiary dies from the same accident as the insured individual, the insurer will proceed as if

A) the insured outlived the beneficiary

B) the beneficiary outlived the insured

C) both the insured and beneficiary died at the same time

D) the estate was listed as beneficiary

Answer: A) the insured outlived the beneficiary

Question:

Answer: D) restricts the ability of the beneficiary to assign benefits

Question:

Answer: C) No federal income tax is owed on life insurance proceeds

Question: Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident?

A) primary beneficiary’s estate

B) contingent beneficiary

C) insured’s estate

D) children of the insured

Answer: B) contingent beneficiary