Missouri Life Insurance Exam Questions And Answers With Verified Solutions Graded A+

Accelerated benefit rider - Allows the insured to receive a portion of the death benefit prior to death if the insured has a terminal illness and is expected to die within 1 to 2 years. Adjustable life policies - Are distinguished by their flexibility that comes from combining term and whole life insurance into a single plan. Adjustable life insurance allows you to bury your coverage as needed. Advantages of whole life insurance - It covers the entire life of the insured. Provides living benefits or cash value policy loans and Fixed premiums Annual renewable term - Term coverage that provides a level face amount that renews annually. This type of coverage is guaranteed renewable annually without proof of insurability Assignment clause - Absolute assignment is when the assignee receive full control of the policy and rights to the policy benefits. A collateral assignment is the partial and temporary transfer of rights. Basic characteristics of universal life policy's are - Flexible benefits, no minimum death benefit, and cash value withdrawals. Coercion - Intimidation manipulates through the threat of negative result, the loss of a business or denial of coverage. Consideration clause - A policy owners consideration consist of completing the application and pay the initial premium. The amount and frequency of premium payments are contained in the consideration clause Convertible term - A term life policy that allows policy owners to convert their term insurance into permanat policy without showing proof of insurability. Death benefit - Tax-free if taken as a lump sum to a named beneficiaryDeath benefit installments - The principle is tax-free and interest is taxable Decreasing term - Term life insurance that provides a decreasing face amount overtime with six premiums. These policies are usually use for mortgage protection Defamation - Defamation is making any derogatory or maliciously critical remarks, statements or publications about it and sure or financial institution with the intent to harm. Drawbacks of whole life insurance - Protection is more expensive because of living benefits and premium paint. May extend beyond the income you're earning years Exclusions - If he sure of life insurance policy stating that the policy will not cover certain risks.