Life Insurance And Annuities Exam Questions With Accurate
Answers.
Accidental Death Benefit (ADB) Rider - accurate answers-More benefit for
accidental death. Max offered is substantially less than face amount
adjustable life - accurate answers-encompassing aspects of whole life, term,
and universal life (UL). "changeable life." When the policy is first issued, the
face amount and premium are selected with a guarantee period. Dividends
paid on adjustable life policies are commonly used to extend the guarantee
period and increase the cash value.
cash option - accurate answers-allows the policy owner to cash out the
dividends they receive. not taxed
cost of living rider - accurate answers-can be added to policies that will
increase the benefit by inflation each year.
declarations page - accurate answers-An insurance policy information page or
pages providing specific details about the insured and the subject of the
insurance.
decreasing term insurance - accurate answers-is a form of term life insurance
in which the premium remains level but the amount of death benefit
decreases.
- generally cover home mortgages. 15 - 30 year policy
deferred annuity - accurate answers-provides income payments at some
future date. contract is based on the accumulation of funds of more than one
year rather than the immediate payment of benefits.
, fixed, variable, and indexed.
deferred income annuity (DIA) - accurate answers-also known as longevity
annuity.
Future income start dates are selected at contract issue rather than making
that decision in the future, like most deferred annuities
Disability Waiver of Premium Rider - accurate answers-Waives premiums if
the insured becomes disabled.
endowment policy - accurate answers-one in which the death benefit and cash
surrender value are equal at a specific date. The face amount of the policy is
paid at endowment and this will likely create an unfavorable tax situation for
the insured.
equity-indexed annuities (EIAs) - accurate answers-offer some of the growth
potential of the stock market with the downside protection of a guaranteed
annuity.
equity-indexed universal life (EIUL) - accurate answers-another form of fixed
permanent life insurance. These policies provide for a minimum fixed interest
rate, but also allow policyowners to use an index option to potentially earn
better returns than the guaranteed rate. They are not variable policies,
fifth dividend option - accurate answers-a provision in cash value life
insurance whereby dividends can be used to purchase one year term
insurance - allows for a small dividend to buy a much larger amount of death
benefit protection.
Answers.
Accidental Death Benefit (ADB) Rider - accurate answers-More benefit for
accidental death. Max offered is substantially less than face amount
adjustable life - accurate answers-encompassing aspects of whole life, term,
and universal life (UL). "changeable life." When the policy is first issued, the
face amount and premium are selected with a guarantee period. Dividends
paid on adjustable life policies are commonly used to extend the guarantee
period and increase the cash value.
cash option - accurate answers-allows the policy owner to cash out the
dividends they receive. not taxed
cost of living rider - accurate answers-can be added to policies that will
increase the benefit by inflation each year.
declarations page - accurate answers-An insurance policy information page or
pages providing specific details about the insured and the subject of the
insurance.
decreasing term insurance - accurate answers-is a form of term life insurance
in which the premium remains level but the amount of death benefit
decreases.
- generally cover home mortgages. 15 - 30 year policy
deferred annuity - accurate answers-provides income payments at some
future date. contract is based on the accumulation of funds of more than one
year rather than the immediate payment of benefits.
, fixed, variable, and indexed.
deferred income annuity (DIA) - accurate answers-also known as longevity
annuity.
Future income start dates are selected at contract issue rather than making
that decision in the future, like most deferred annuities
Disability Waiver of Premium Rider - accurate answers-Waives premiums if
the insured becomes disabled.
endowment policy - accurate answers-one in which the death benefit and cash
surrender value are equal at a specific date. The face amount of the policy is
paid at endowment and this will likely create an unfavorable tax situation for
the insured.
equity-indexed annuities (EIAs) - accurate answers-offer some of the growth
potential of the stock market with the downside protection of a guaranteed
annuity.
equity-indexed universal life (EIUL) - accurate answers-another form of fixed
permanent life insurance. These policies provide for a minimum fixed interest
rate, but also allow policyowners to use an index option to potentially earn
better returns than the guaranteed rate. They are not variable policies,
fifth dividend option - accurate answers-a provision in cash value life
insurance whereby dividends can be used to purchase one year term
insurance - allows for a small dividend to buy a much larger amount of death
benefit protection.
