lifeins t11 - #74. Both Universal Life and Variable...

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#74. Both Universal Life and Variable Universal Life have a a) Flexible premium.b)Level fixed premium.c) Decreasing premium. d)Increasing premium. Variable universal life, like universal life itself, has a flexible premium that can be increased or decreased as the policyowner chooses, so long as there is enough value in the policy to fund the death benefit. #75. Which nonforfeiture option provides coverage for the longest period of time? a)Accumulated at interestb) Reduced paid-upc) Extended term d)Paid-up option The reduced paid-up nonforfeiture option would provide protection until Jasper reaches 100, but the face amount is reduced to what the cash would buy. #77. What is the advantage of having a qualified annuity? a)Higher dividendsb) Favorable tax treatmentc) There is no advantage d)Receiving a lump-sum settlement tax free Those annuities meeting the IRS guidelines receive favorable tax treatment for funding qualified retirement plans. #78. A rider that may be attached to a life insurance policy that will adjust the face amount based upon a specific index, such as the Consumer Price Index, is called a)Payor rider.b) Cost of living rider.c) Accelerated benefit rider. d)Living need rider. A "cost of living" rider adjusts the face amount of a policy to maintain the relationship of the face amount and increases in the cost of living. #79. Which of the following is usually true of a participating life insurance policy? a)May be converted to a term life policy.b)Pays dividends to stockholders.c) Assesses premiums against stockholders. d) Pays dividends to policyowners. Participating is a term used to refer to any insurance policy that distributes its
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This note was uploaded on 11/22/2010 for the course LIFE INSUR 245 taught by Professor Knowles during the Spring '10 term at El Centro College.

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lifeins t11 - #74. Both Universal Life and Variable...

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