CA- PSI- Life, Accident & Health Exam Questions with complete solution

Reduced Paid Up - ANSWER-Nonforfeiture option provides new whole life policy at reduced face amount of protection. Provides coverage for longest time. Extended Term - ANSWER-Nonforfeiture option provides new TERM policy with same face amount of coverage as original policy Guaranteed Lifetime Withdrawal - ANSWER-Annuity rider that assures owner will at least get amount paid for the annuity Guaranteed Minimum Income - ANSWER-Rider that guarantees you will get a set amount annually Paid-Up Additions - ANSWER-Increase the death benefit of the original policy by the amount the dividend will buy Needs Approach - ANSWER-The predicted needs of a family after the premature death of the insured 3 Factors that determine premium of life insurance policy - ANSWER-Mortality, Interest, Expense Optionally Renewable - ANSWER-Allows insurer to terminate policy for any reason or increase premiums for a class of insureds on specified date. Only allowed to terminate on premium due dates Monthly Premium for health insurance- How long is grace period - ANSWER-10 days for monthly pay mode. 7 days for weekly pay mode. 31 days for all other modes. Purpose of Coinsurance provision - ANSWER-Prevent overutilization of policy benefits What does "level" refer to in level term insurance? - ANSWER-Face Amount