WASHINGTON LIFE HEALTH INSURANCE COMPREHENSIVE
EXAM 2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔Guaranteed insurability rider - ✔✔Offers the insured specified increases in the
policy's death policy death benefit at very specific intervals or events such as certain
birthdays or when the insured gets married or has a child. The premium charged for the
additional insurance will be based on the insured's attained age
✔✔Return of Premium Term Rider - ✔✔A rider that would return the premium paid into
the policy. This rider dramatically adds to the monthly payment due to the company
each month, but is not considered part of the actual premium.
✔✔Return of cash value term rider - ✔✔A rider that allows the beneficiary to receive,
upon the insureds demise, the death benefit and the cash value. Usually not extended
beyond age 65.
✔✔Additional insured term rider - ✔✔Whole life to insured, convertible term life riders
on family members, or business partners
✔✔Payor Benefit rider (Applicant waiver provision) - ✔✔Prevents a young person from
having to pay the premium until a specified age if the policy owner dies and the
premium can no longer be paid
✔✔Dividend option - ✔✔Only mutual insurance companies
Overcharge in premium returned to policy holders
Law prohibits garentee of dividend
Generally not in term insurance, but used in whole life
✔✔HELP!!! Additional paid-up insurance - ✔✔Buy a miniature paid up whole life policy
Dividend used as a single net premium payment to purchase as much paid-up
insurance as possible
Free of sales commissions and expenses
✔✔One year term insurance dividend option - ✔✔dividend used to fund miniature term
policy w/ term of one year
✔✔HELP!!! Accumulate at interest dividend option - ✔✔Hold the dividends in a
separate savings account for the insured. The money will generate interest at a
specified rate. Owner can withdraw funds at anytime. IF left alone, death benefit and the
dividends and interest will be paid out.
Dividends are refund of premium, they are not taxable, however he interest earnings
generated with the accumulate at interest dividend option ARE taxable
✔✔Reduced premium option - ✔✔Dividend is applied toward the next years premium
, ✔✔Paid up life (accelerated endowment) - ✔✔The dividend is used to reduce the total
length of time the owner has to pay on the whole life policy
✔✔nonforfeiture options - ✔✔How the cash value is paid if the policy lapses
✔✔Settlement options - ✔✔How the death benefit is paid to the beneficiary
Cash option
Interest option
Annuity option
✔✔Additional paid-up insurance dividend option (Paid-up additions dividend option) -
✔✔Dividend used as a single net premium payment on a miniature paid up whole life
policy. This is the automatic dividend option when no other option is selected.
✔✔One year term - ✔✔Buying a one year term with dividends
✔✔Accumulate at interest dividend option - ✔✔The dividends are left in a sales account
to accumulate interest at a set amount specified in the policy. Dividends are not taxable,
but the interest is.
✔✔Cash dividend option - ✔✔The company sends you a check with the value of the
dividend. the company send the policy owner a check when the dividend is issued (on
the anniversary date) Law prohibits any guarantee on policy dividends. Almost
completely exclusive to whole-life policies
✔✔Reduced premium dividend option - ✔✔The dividend is used to payoff part or all of
the policies premium.
✔✔Paid-up life dividend option - ✔✔The dividend is used to reduce the total length of
time the own has to pay the whole life policy
✔✔Cash Value options - ✔✔Borrow against the cash value
Use the living trust
Surrender and terminate the policy
✔✔Non-forfeiture of cash value - ✔✔IF the policy is fore-fitted, the cash value is
returned to the insured NOT taken by the company
✔✔Non-forfeiture options - ✔✔Extended term insurance
Reduced-paid up insurance
Cash
EXAM 2026/2027 QUESTIONS AND SOLUTIONS RATED A+
✔✔Guaranteed insurability rider - ✔✔Offers the insured specified increases in the
policy's death policy death benefit at very specific intervals or events such as certain
birthdays or when the insured gets married or has a child. The premium charged for the
additional insurance will be based on the insured's attained age
✔✔Return of Premium Term Rider - ✔✔A rider that would return the premium paid into
the policy. This rider dramatically adds to the monthly payment due to the company
each month, but is not considered part of the actual premium.
✔✔Return of cash value term rider - ✔✔A rider that allows the beneficiary to receive,
upon the insureds demise, the death benefit and the cash value. Usually not extended
beyond age 65.
✔✔Additional insured term rider - ✔✔Whole life to insured, convertible term life riders
on family members, or business partners
✔✔Payor Benefit rider (Applicant waiver provision) - ✔✔Prevents a young person from
having to pay the premium until a specified age if the policy owner dies and the
premium can no longer be paid
✔✔Dividend option - ✔✔Only mutual insurance companies
Overcharge in premium returned to policy holders
Law prohibits garentee of dividend
Generally not in term insurance, but used in whole life
✔✔HELP!!! Additional paid-up insurance - ✔✔Buy a miniature paid up whole life policy
Dividend used as a single net premium payment to purchase as much paid-up
insurance as possible
Free of sales commissions and expenses
✔✔One year term insurance dividend option - ✔✔dividend used to fund miniature term
policy w/ term of one year
✔✔HELP!!! Accumulate at interest dividend option - ✔✔Hold the dividends in a
separate savings account for the insured. The money will generate interest at a
specified rate. Owner can withdraw funds at anytime. IF left alone, death benefit and the
dividends and interest will be paid out.
Dividends are refund of premium, they are not taxable, however he interest earnings
generated with the accumulate at interest dividend option ARE taxable
✔✔Reduced premium option - ✔✔Dividend is applied toward the next years premium
, ✔✔Paid up life (accelerated endowment) - ✔✔The dividend is used to reduce the total
length of time the owner has to pay on the whole life policy
✔✔nonforfeiture options - ✔✔How the cash value is paid if the policy lapses
✔✔Settlement options - ✔✔How the death benefit is paid to the beneficiary
Cash option
Interest option
Annuity option
✔✔Additional paid-up insurance dividend option (Paid-up additions dividend option) -
✔✔Dividend used as a single net premium payment on a miniature paid up whole life
policy. This is the automatic dividend option when no other option is selected.
✔✔One year term - ✔✔Buying a one year term with dividends
✔✔Accumulate at interest dividend option - ✔✔The dividends are left in a sales account
to accumulate interest at a set amount specified in the policy. Dividends are not taxable,
but the interest is.
✔✔Cash dividend option - ✔✔The company sends you a check with the value of the
dividend. the company send the policy owner a check when the dividend is issued (on
the anniversary date) Law prohibits any guarantee on policy dividends. Almost
completely exclusive to whole-life policies
✔✔Reduced premium dividend option - ✔✔The dividend is used to payoff part or all of
the policies premium.
✔✔Paid-up life dividend option - ✔✔The dividend is used to reduce the total length of
time the own has to pay the whole life policy
✔✔Cash Value options - ✔✔Borrow against the cash value
Use the living trust
Surrender and terminate the policy
✔✔Non-forfeiture of cash value - ✔✔IF the policy is fore-fitted, the cash value is
returned to the insured NOT taken by the company
✔✔Non-forfeiture options - ✔✔Extended term insurance
Reduced-paid up insurance
Cash
