Chapter 11

Question 1

If you don’t want to keep your whole life policy until maturity, you have some options that allow you to access the money in the cash account or convert your policy called..?

Answer 1

non-forfeiture options

Question 2

There are ____ non-forfeiture options:

Answer 2

3

Question 3

What are 3 non-forfeiture options?

Answer 3

1.) cash surrender value option
2.) reduced paid-up option
3.) extended term option

Question 4

The beneficiary receives a single payment of the entire death benefit called..?

Answer 4

lump sum

Question 5

When the beneficiary receives money over a fixed period of time until the policy is exhausted, this is called..?

Answer 5

fixed period (period certain)

Question 6

When the beneficiary receives fixed amounts of money until the policy is exhausted, this is called..?

Answer 6

fixed amount

Question 7

_____ is when the beneficiary receives payments until they die.

Answer 7

Life income

Question 8

______ is when the insured dies, the death benefit is placed in a trust where it earns interest.

Answer 8

Interest only