Life Insurnance premiums,proceeds and benificiaries

Question 1

Life insurance premiums are caluculated based on the the following three

Answer 1

mortality,interest, and expense factors

Question 2

___ is the number is deaths in a given populations which helps to predict the life expectancy in a given group.

Answer 2

mortality factor

Question 3

The rate of earing on investment is reducing payments by investing the premiums is called

Answer 3

interst factor

Question 4

___ is the operating or the loading charge, commissions, administrative, rent,utilities

Answer 4

Expense factor

Question 5

Name 6 things that impact the premium amount.

Answer 5

age, sex,health , occupation, hobbies, habits

Question 6

____ allows the policy owner to select the timing of the premium payments

Answer 6

MODE

Question 7

The greater the benifit the higher the

Answer 7

premium

Question 8

What are the premium payment options

Answer 8

annual,semi-annual,quarterly,monthly

Question 9

The higher the frequency of payments the____

Answer 9

higher the premiums

Question 10

The policyowner pays more in the early years for protection to help cover the cost in the later yers which a lllows the premiums to level off is called___

Answer 10

level premium funding

Question 11

__ provides protection ofr a life as a paid up policylooks like a whole life policy

Answer 11

singlepremium funding

Question 12

What are the exceptions to the rules for the tax purposes:

Answer 12

charity, ex-spose used for alimony,emolyer oaid premiums to benefits employees

Question 13

Cash value in policies remain ____ as long as the cash istays in the policy.

Answer 13

tax free

Question 14

When the cash value is surrendered then the portion that exceeds the premiums paid is ____

Answer 14

taxable

Question 15

For policies that are notsurrendedered the cash value grows ___

Answer 15

tax free

Question 16

The policyowner may change the payout at ____during the life of the insured

Answer 16

anytime

Question 17

Claims are only delayed if the insurer

Answer 17

does not reive notification of death

Question 18

Options for settlement:

Answer 18

lump sum, interest only, fixed period, fixed amount, life income

Question 19

When a payment is paid on a life long basis to two or more people this is called _____

Answer 19

joint and survivor benefit

Question 20

___ is an option to use the death proceeds before the health when they have a terminal illness

Answer 20

living benefits

Question 21

__ allows the doctor to certify as terminally ill to access health benefits

Answer 21

accelerated benefit

Question 22

__is when the patient sells their existing life insurance to a third party for a percentage of the death benefit

Answer 22

viatical settlement

Question 23

the policyholder is called the _-

Answer 23

viator

Question 24

the new third party is called the ______

Answer 24

viatical or viatee

Question 25

___ is a way of financing life insurance for that in a higher tax bracket(only paying the difference between the premium due and the amount borrowed.

Answer 25

minimal deposit