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