Tennessee Life and Health Insurance
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◦ Allows early payment of a portion of the face if insured becomes terminally ill
◦ Could include nursing home and dread disease benefits - Answer -Living Need (Accelerated
Benefit)
◦ Covers one or more children
◦ At age 21 or 25 may convert without proof of insurability - Answer -Child Rider
◦ Double the face if death was accidental
◦ Does not add additional values to the base policy - Answer -Accidental Death (Double Indemnity)
◦ If the insured dies within the term, benefits are face amount plus premiums
◦ Increasing term rider equals total premiums - Answer -Return of Premium
◦ Increasing term that increases with the Consumer Price Index
◦ Adjustments are made annually with no evidence of insurability - Answer -Cost of Living (COL)
◦ Premium waived if the premium payor becomes disabled or dies
◦ When added to juvenile policy, waiver is cancelled at age 21 to 25
◦ Payor must qualify for the rider - Answer -Wavier of Payors Premium (Payor Benefti)
◦ Premiums waived
◦ Insured receives a monthly income - Answer -Waiver of premium/disability income
◦ Term rider equals cash value
◦ If die within term, benefits are face amount plus cash value - Answer -Return of cash value
◦ Total disability, waive premiums
◦ Cash value, dividends and protection continue
as usual - Answer -Waiver of Premium
,◦ Waives deduction of monthly cost and expenses associated with Universal Life - Answer -Waiver
of Cost of Insurance
1. Adjustable face amount - with insurability
2. Flexible premiums
3. Cash value earns interest at current rate with a guaranteed minimum (general account)
4. Monthly mortality charges are deducted (annual renewable term)
5. May borrow or withdraw cash without terminating contract
6. Two death benefit options: Option A - Level benefit; Option B - Increasing benefit - Answer -
Universal Life
1. Adjustable premium can be increased or decreased
2. Adjustable benefit can be increased with insurability
3. Adjustable time period of coverage
4. Adjustable cash value growth - Answer -Adjustable Life
1. Beneficiary can be changed at any time
2. Beneficiary has no rights in the policy - Answer -Revocable Beneficiary
1. Combination of Variable and Universal
2. Flexible premiums and death benefits
3. Separate accounts show actual investment participation
4. Prospectus given to owner
5. FINRA registration and insurance license required - Answer -Variable Universal Life (VUL)
1. Covers two or more lives
2. Death benefit paid upon first death
3. Premiums based upon joint age
4. Written on a Whole Life Policy - Answer -Joint Life (first to die)
1. Once named as irrevocable, beneficiary cannot be changed unless they die or give written consent
2. Owner may need consent of beneficiary before exercising some owner's rights - Answer -
Irrevocable
1. Ordinary Whole Life
2. Permanent protection, age 100
, 3. Builds cash, loan, non-forfeiture values
4. Cash Value = Face Value at maturity
5. Level premium and face amount
6. Owner may borrow from cash value
7. Settlement options available upon death or maturity
8. The shorter the premium paying period the higher the premium
9. Riders may be added - Answer -Characteristics of Whole Life
1. Outstanding loans will be deducted from the face amount, plus interest
2. Interest charged but unpaid is added to the loan
3. Failure to repay the loan or interest will not void the policy until it equals the cash value -
Answer -Cash Loans
1. Owner of life insurance policy sells policy to a third party. Owner is expected to live longer than two
years.
2. Settlement for more than cash value and less than face value
3. Typically for policyowners 70 and older - Answer -Life Settlement
1. Temporary
2. No cash/loan value
3. Pure protection
4. Low initial premium - Answer -What are the characteristics of a term policy?
1. Written on life of minor
2. Protect future insurability
3. "Jumping Juvenile" automatically increases in face amount at a specified age (usually age 21 or 25) -
Answer -Juvenile
1. Written on two or more lives
2. Death benefit paid at last insured's death
3. Written on Whole Life policy
4. Used to cover estate taxes
5. Rates lower than purchasing two separate policies - Answer -Joint survivorship life (Last to Die)
A. 2 - Answer -The insurer is not liable of the insured, whether sane or insane, commits suicide
within the first _____ years the policy is in force.
Exam Study Guide Questions with
Correct Answers Graded A Download to
Get a Perfect Score
◦ Allows early payment of a portion of the face if insured becomes terminally ill
◦ Could include nursing home and dread disease benefits - Answer -Living Need (Accelerated
Benefit)
◦ Covers one or more children
◦ At age 21 or 25 may convert without proof of insurability - Answer -Child Rider
◦ Double the face if death was accidental
◦ Does not add additional values to the base policy - Answer -Accidental Death (Double Indemnity)
◦ If the insured dies within the term, benefits are face amount plus premiums
◦ Increasing term rider equals total premiums - Answer -Return of Premium
◦ Increasing term that increases with the Consumer Price Index
◦ Adjustments are made annually with no evidence of insurability - Answer -Cost of Living (COL)
◦ Premium waived if the premium payor becomes disabled or dies
◦ When added to juvenile policy, waiver is cancelled at age 21 to 25
◦ Payor must qualify for the rider - Answer -Wavier of Payors Premium (Payor Benefti)
◦ Premiums waived
◦ Insured receives a monthly income - Answer -Waiver of premium/disability income
◦ Term rider equals cash value
◦ If die within term, benefits are face amount plus cash value - Answer -Return of cash value
◦ Total disability, waive premiums
◦ Cash value, dividends and protection continue
as usual - Answer -Waiver of Premium
,◦ Waives deduction of monthly cost and expenses associated with Universal Life - Answer -Waiver
of Cost of Insurance
1. Adjustable face amount - with insurability
2. Flexible premiums
3. Cash value earns interest at current rate with a guaranteed minimum (general account)
4. Monthly mortality charges are deducted (annual renewable term)
5. May borrow or withdraw cash without terminating contract
6. Two death benefit options: Option A - Level benefit; Option B - Increasing benefit - Answer -
Universal Life
1. Adjustable premium can be increased or decreased
2. Adjustable benefit can be increased with insurability
3. Adjustable time period of coverage
4. Adjustable cash value growth - Answer -Adjustable Life
1. Beneficiary can be changed at any time
2. Beneficiary has no rights in the policy - Answer -Revocable Beneficiary
1. Combination of Variable and Universal
2. Flexible premiums and death benefits
3. Separate accounts show actual investment participation
4. Prospectus given to owner
5. FINRA registration and insurance license required - Answer -Variable Universal Life (VUL)
1. Covers two or more lives
2. Death benefit paid upon first death
3. Premiums based upon joint age
4. Written on a Whole Life Policy - Answer -Joint Life (first to die)
1. Once named as irrevocable, beneficiary cannot be changed unless they die or give written consent
2. Owner may need consent of beneficiary before exercising some owner's rights - Answer -
Irrevocable
1. Ordinary Whole Life
2. Permanent protection, age 100
, 3. Builds cash, loan, non-forfeiture values
4. Cash Value = Face Value at maturity
5. Level premium and face amount
6. Owner may borrow from cash value
7. Settlement options available upon death or maturity
8. The shorter the premium paying period the higher the premium
9. Riders may be added - Answer -Characteristics of Whole Life
1. Outstanding loans will be deducted from the face amount, plus interest
2. Interest charged but unpaid is added to the loan
3. Failure to repay the loan or interest will not void the policy until it equals the cash value -
Answer -Cash Loans
1. Owner of life insurance policy sells policy to a third party. Owner is expected to live longer than two
years.
2. Settlement for more than cash value and less than face value
3. Typically for policyowners 70 and older - Answer -Life Settlement
1. Temporary
2. No cash/loan value
3. Pure protection
4. Low initial premium - Answer -What are the characteristics of a term policy?
1. Written on life of minor
2. Protect future insurability
3. "Jumping Juvenile" automatically increases in face amount at a specified age (usually age 21 or 25) -
Answer -Juvenile
1. Written on two or more lives
2. Death benefit paid at last insured's death
3. Written on Whole Life policy
4. Used to cover estate taxes
5. Rates lower than purchasing two separate policies - Answer -Joint survivorship life (Last to Die)
A. 2 - Answer -The insurer is not liable of the insured, whether sane or insane, commits suicide
within the first _____ years the policy is in force.
