Which Statement Concerning Adjustable Life Insurance Is Accurate

No premium is normally charged for a childrens rider. Which statement regarding the life insurance premium for a childrens rider is true.

Chapter 4- Life Insurance Policies.

. Policy loans are not permitted Correct. 1212 Submit Which of the following is generally a form of group credit life insurance. All of these statements about an adjustable life insurance policy are true EXCEPT Evidence of insurability is required when there is a change in premium.

Question 7 Which statement regarding an adjustable life insurance policy is NOT true. Universal life insurance normally has a minimum guaranteed cash value for duration of the policy. Although E was married with three children at the time of death the primary beneficiary is still F.

If the adjustable life policy has cash value the policyowner is permitted to take out a policy loan. Increasing premium as additional children are born d. If an employer pays life insurance premiums.

If there is a slight lapse in the payment of a premium it is to prevent the life insurance company from forcing the insured to provide insurability again. Which statement concerning adjustable life insurance is accurate. Provisions Options and Riders Exam 1 Which of these statements accurately portrays an adjustable life insurance policy.

The face amount and premiums can be changed simultaneously by the policyowner- Adjustable life insurance combines features of both term and whole life coverage. Life insurance premiums under most circumstances are not taxed ie no sales tax is added or charged. Settlement options are limited 4.

B Both types of coverage provide a tax-free death benefit. Which of these statements is true. Premium remains the same no matter how many children c.

In a life insurance policy is meant to protect the insured. The adjustable life policy does not offer all of the same guarantees regarding cash values mortality and expenses as traditional whole life policies do. Which of the following statements about universal life insurance is NOT true.

It is considered a nonqualified employee benefit. Which statement concerning adjustable life insurance is accurate. E and F eventually terminate their business and four months later E dies.

The adjustable life policy gives the policyowner the right to request and obtain a reconfiguration of the policy at specified intervals. These premiums are also not tax-deductible. Each takes out a 500000 life insurance policy on the other naming himself as primary beneficiary.

C Group insurance is automatic and requires less medical information than the individual coverage. The employer pays a bonus to a selected employee to fund the policy. Adjustable life insurance allows the policyowner to adjust the policys face amount premium and type of protection without having to complete a new application or exchange policies.

Cash value loans are not permitted 2. A Group life tends to have a lower premium per person than individual life. The illustration regulation applies to all group and individual life insurance policies and certificates but there are exceptions.

Decreasing premium as each child becomes an adult b. The total premium paid had totaled 16000. What were the federal income tax consequences to the policy owner on receipt of the cash value.

All of the following statements concerning the use of life insurance as an Executive Bonus are correct EXCEPT 1. Type of Insurance Policies. In the event of death the loan amount is deducted from the policy proceeds.

A nonparticipating whole life insurance policy was surrender for its 20000 cash value. Which statement concerning adjustable life insurance is accurate. Which statement concerning adjustable life insurance is accurate.

The face amount and premiums can be changed simultaneously by the policyowner Which of the following statements is TRUE regarding a universal life insurance policy. In policies for which the premiums are paid monthly the grace period is one month but no less than 30 days. A Cash value accumulations have a guaranteed minimum interest rate b Policyowner can change the face amount but not the premium c Policyowner can change the premium but not the face amount d Partial withdrawals cannot be made from the policys cash value.

The policy is owned by the company. Which statement regarding universal life insurance is correct. Only the face amount can be changed by the policyowner.

In comparing the purchase of individual life insurance to group life which statement is NOT true. It does not apply to variable life insurance individual and group annuity contracts credit life insurance and life insurance policies with no illustrated death benefits on any individual exceeding 10000. These are all accurate statements regarding universal life insurance EXCEPT.

The face amount and premiums can be changed simultaneously by the policyowner 3. Any type of insurance policy may be used. A policyowner has just borrowed from a life insurance policys cash value.

In this situation the policy owner would receive 16000 tax free and 4000 as ordinary income. Life insurance policies provisions options and riders-Which statement concerning adjustable life insurance policy is false Cash surrender is possible evidence of insurability required when change in premium Combines term and permanent insurance into single plan an actual premium paid is allowable.

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