LAH- life

Question 1

human value approach looks at what?

Answer 1

just the amount of income loss only from death of breadwinner

Question 2

need based approach looks at what?

Answer 2

looks at everything:

death costs
income replacement
education for children
continuing income for spouse

Question 3

max days to pay a claim in life insurance?

- should be paid when?

Answer 3

60 days max to pay claim

- should be paid immediately

Question 4

Universal life (flexible policies)
- cash value hits 0$ grace period?

Answer 4

30 - 60 days

Question 5

variable life insurance free look period

Answer 5

45 days

Question 6

variable life insurance policy conversion time window to original policy?

Answer 6

within 2 year

Question 7

variable life insurance grace period for premiums?

Answer 7

31 days

Question 8

can withdraw or loan up to how much cash value in a variable life account?

Answer 8

75%

Question 9

family income poilcies combine what two types?

- starts from when?

Answer 9

whole life and decreasing term

decreasing term starts FROM policy issue date

Question 10

family maintenance policy combines what two types?

starts when?

Answer 10

whole life(permanent) and level term

starts from TIME OF DEATH

Question 11

family policies combines what?

• amounts for others?

Answer 11

permanent plan for insured
term for insurance of dependents

spouse= 1/4 amount
children = 1/5 amount until stated age and then can covert WITHOUT showing insurability

Question 12

junenville policies for minors under what age?

Answer 12

15 years old

Question 13

jumping juvenile policies increase by what amount and at what age?

insurability and premiums?

Answer 13

5x the amount at age 21

no insurability and no premium increase

Question 14

modified premium plan vs graded premium plan?

Answer 14

modified = cheap early, ONE premium increase and remains that forever

graded= increasing premiums each year for 5-10 years and then remains that forever

Question 15

index linked life insurance is linked to what?

Answer 15

protect against inflation

linked to CPI

Question 16

accident death (double indemnity) rider …. and dismemberment

• provides what?
• how many days for accident to count?

Answer 16

• double death benefit (face value times 2) IF DEATH BY ACCIDENT or for the dismemberment = TWO limbs or blindness
• death/ dismember at time of accident or within 90 days

Question 17

waiver of premium does what?

• waiting period to be eligible?

what about universal flexible premiums?

Answer 17

• no premium payments needed during time when totally and permanently disabled
• 3 - 6 months
• waves ONLY the amount of annual minimum premium

Question 18

guaranteed insurability rider

• days to elect coverage option?
• every how many years?
• insurbailtiy?
• age limits?
• amounts?

Answer 18

90 days
every 3 years
no proof of insurability
25-40
up to original face amount

Question 19

policy loan provision says cash value must be in policy after minimum how many years?

Answer 19

3 years

Question 20

life lawsuits against insurer must be filed within how long?

Answer 20

1 year

Question 21

annuity penalty for withdrawing early?

• amount?
• age you must be before being able to withdraw without penalty?

Answer 21

10%

59.5 years old

Question 22

group life conversion time frame after termination?

Answer 22

31 days

Question 23

federal group employee life insurance

- amount?

Answer 23

1 year salary

Question 24

Social security life benefits; Retired worker

• worker gets - at 65?, at earliest age?
• spouse caring for child?
• spouse for themselves?
• children themselves?

Answer 24

100% pia, 62 gets 80%

• 50% to spouse caring for child under 18 or disabled before 22
• 100% for themselves
• unmarried child gets 50% until 18 or disabled before 22

Question 25

Social security life benefits; survivorship benefits - spouse caring for child? - spouse for themselves? - children themselves?

Answer 25

75% when caring for child under 18 or disabled before 22 71.5% at 60 or 100% at 65 75% unmarried child until 18 or disabled before 22 dependent parent= 82.5% or if BOTH parents= 75% each

Question 26

``` life tax considerations - individual insurance cash value = ? death benefit? loans? ```

Answer 26

grows tax free tax free to beneficiary tax free

Question 27

MEC tax? | withdraw age for no penalty?

Answer 27

taxed as originally income penalty for withdrawing before 59.5

Question 28

life insurance premium taxes are?

Answer 28

NOT tax deductible

Question 29

all benefits are received? dividends received? interest gained on anything is received?

Answer 29

income tax free income tax free taxed on the gain

Question 30

surrender value taxing?

Answer 30

anything above the cost basis (amount of premiums paid) is taxed

Question 31

annuity taxes?

Answer 31

anything above capital payment amounts is taxed

Question 32

cash value accumulation taxes?

Answer 32

grows tax free taxed on withdrawal

Question 33

grace period for rollovers of retirement accounts?

Answer 33

60 days

Question 34

number of days replacing insurer must notify existing insurer?

Answer 34

5 days

Question 35

replacement documents held for how many years?

Answer 35

6