Flashcards in Chapter 4 Life Deck (11):
What kind of life insurance beneficiary requires his/her consent when a change of beneficiary is made?
Irrevocable beneficiary. An irrevocable designation may not be changed without the written consent of the beneficiary.
What is the underlying concept regarding level premiums?
The early years are charged more than what is needed.
A level premium indicates
the premium is fixed for the entire duration of the contract/life of the policy.
If the insured and primary beneficiary are both killed in the same accident and it cannot be determined who died first, where are the death proceeds to be directed under the Uniform Simultaneous Death Act?
Insured's contingent beneficiary. Under the Uniform Simultaneous Death Act, if both insured and primary beneficiary are killed in the same accident and there is insufficient evidence to show who died first, policy proceeds will be paid as if the insured died last. In other words, the proceeds will be paid to the secondary or contingent beneficiary.
A policyowner is able to choose the frequency of premium payments through what policy feature?
Premium Mode. Premium Mode is the feature that allows the policyowner to select the timing of premium payment, such as monthly, quarterly, annually etc.
Which premium schedule results in the lowest cost to the policyowner?
Annual. If the policyowner chooses to pay the premium more than once per year (example monthly, quarterly, semi-annually) there normally will be an additional charge because the company will have additional charges in billing and collecting the premium payments.
On a life insurance policy, who is qualified to change the beneficiary designation?
J would like to maintain the right to change beneficiaries. Which beneficiary designation should be used?
A policyowner is allowed to pay premiums more than once a year under which provision?
Mode of Premium
What is the title of the life insurance beneficiary whose designation may not be changed by the policyowner without the consent of the beneficiary?