9.1d

Question 1

As is the case for the surrender cost index, a lower net payment cost index number equates to a ______, in comparison to other policies, thus providing a higher death benefit to the policy’s beneficiary upon the death of the insured. The focus is on the amount of death benefits payable to the policy’s beneficiary, as opposed to the surrender value of the policy for the policyowner.

Answer 1

less expensive policy

Question 2

Regardless of whether the focus is on cash value (Surrender Cost Index) or the death benefit amount (Net Payment Cost Index), the ______, the less costly the policy is in comparison to other similar policies, based on the same period of time (10-year or 20-year comparison period).

Answer 2

lower the index number

Question 3

When selling life insurance, an agent often incorporates ‘illustrations’ to help ______. As defined by the NAIC, a life insurance policy Illustration is a presentation or depiction that includes non-guaranteed elements of a life insurance policy over a period of years.

Answer 3

explain the benefits and costs of a life insurance policy

Question 4

______ include premiums, benefits, value, credits or charges under a life insurance policy that are not guaranteed or determined at policy issue, whereas ______ include premiums, benefits, values, credits or charges under a life insurance policy that are guaranteed and determined at policy issue.

Answer 4

Non-Guaranteed Elements

Guaranteed Elements

Question 5

A Basic Illustration is defined as a ledger or proposal used in the sale of a life insurance policy that shows ______.

Answer 5

both guaranteed and non-guaranteed elements