Life Insurance Policy Provisions Qualified Plans and Federal Tax Considerations for Life Insurance and Annuities
Life Insurance Policy Provisions Qualified Plans and Federal Tax Considerations for Life Insurance and Annuities When the insured purchased a new home he wanted to purchase a life insurance policy that would protect his family against losing the home should he die before the mortgage was paid. The most inexpensive type of policy that would accomplish this need would be - ANS: decreasing term An annually renewable term policy - ANS: renews each year with an increased premium Which of the following is an example of a limited-pay life policy? - ANS: life paid-up at age 65 An insurance policy that only requires a payment of premium at its inception and provides insurance protection for the life of the insured and endows at the insured's age 100, is called - ANS: single premium whole life A graded premium life policy is a modified form of what type of insurance? - ANS: whole life What type of life insurance is most commonly used for group plans? - ANS: annually renewable term With a traditional whole life policy, the death benefit - ANS: remains constant over time A policy that allows the beneficiary to collect both the death benefit and cash value upon the death of the insured is - ANS: Universal life, Option B An insured receives a monthly summary regarding his life insurance policy. He notices that the cash value of the policy is significantly lower this month than it was last month. What type of policy does he have? - ANS: variable In a single employer group plan, what is the name of a document that is issued to the employer? - ANS: master contract Which of the following is true regarding term insurance? - ANS: if the insured dies after the end of the term, there is no death benefit to the beneficiary
Written for
- Institution
- Life insurance
- Course
- Life insurance
Document information
- Uploaded on
- November 27, 2024
- Number of pages
- 5
- Written in
- 2024/2025
- Type
- Exam (elaborations)
- Contains
- Questions & answers
Subjects
- primerica life insurance
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life insurance policy provisions
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tax considerations for life insurance
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life insurance and annuities
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