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NY Life and Health Insurance > Chapter 6 &7 > Flashcards

Chapter 6 &7 Flashcards

1
Q

Three options are available to policy owners who decides to surrender a whole life policy, the policy owner can stop paying premiums and he will not forfeit the cash value or equity that has built up in the policy.

A

Non forfeiture options( cash value must be present)

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2
Q

What are the three non forfeiture options

A

Surrender for cash, extended level term insurance, reduced paid up premium insurance.

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3
Q

allows the policy owner to return or send the policy back in return for its cash saving value.

A

Surrender for Cash

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4
Q

allows the policy owner to surrender the whole life in exchange for a level term plan with the same face amount

A

Extended Level Term Insurance

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5
Q

The cash value will be identical to the face amount of the surrender whole life policy

A

Extended Level Term Insurance

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6
Q

Provides the insured with the most life insurance protection in the event of voluntary or none premium payment

A

Extended Level Term Insurance

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7
Q

Policy allows the policy owner to surrender the policy and use the cash value to buy a smaller or reduced amount of permeant paid up life insurance.

A

Reduced Paid up permeant insurance

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8
Q

What are some ways policy owners can receive dividends

A

CASH, Reduced Premiums, Accumulate at interest , Paid up permeant additions , paid up options, one year term.

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9
Q

Which of the following policy options allows a policy owner effectuate a single premium purchase.

A

Reduced Premium Payments

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10
Q

All the following are dividend options EXCEPT

A

Reduced paid Up Options

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11
Q

Which of the following non - forfeiture option provides the greatest amount of protection

A

Extended Term insurance

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12
Q

The policy owner exercises a paid up additions dividend option the amount coverage purchase will based upon the insured attained age and

A

The amount of the dividend

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13
Q

Use Dividend to purchase additional whole life insurance

A

Paid up additions

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14
Q

Informs insure to return dividend to a designated account

A

Accumulate interest

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15
Q

Dividend Used to simply purchase any type of term insurance that the insurer offers

A

One year term

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16
Q

Return the Dividend and subtract the amount from the premium

A

Reduced Premium

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17
Q

Insure will send Dividend directly to the insured

A

Cash

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18
Q

Which of the following settlement options pays a specified monthly income for as long as the policy proceeds plus interest last

A

Fixed Amount

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19
Q

A rider that pays an increasing amount of term insurance equal to the amount of total payments made for coverage, in addition to the death benefit at the time of death, is known as

A

Return of Premium

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20
Q

Benefit of 1% of the face value of the policy which payable if the insured is totally disabled. Income benefits begin after the six month waiting period.

A

Disability Income benefit Rider

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21
Q

If the insured becomes disabled for six consecutive months, the insurer promises to waive ant future premium payments. Until he or she returns to work.

A

Waiver Of Premium

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22
Q

Which none forfeiture option is automatically exercised if a policy lapse with current cash value and the insurer is unable to contact the policy owner

A

Surrender For Cash

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23
Q

A rider that permits a the policy owner to purchase additional life insurance without tak9ng a physical examination best describes

A

Guaranteed Insurability Rider

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24
Q

If a whole life policy premium is not paid by the end of the contract grace period and the policy contains several thousand dollars of equity, what policy option will protect the insured against a coverage lapse

A

Non forfeiture benefit

25
Q

A series of periotic payments made to an annuitant

A

Annuities

26
Q

Only sold by a life insurance company

A

Annuities

27
Q

Liquidation of an estate

A

Annuities

28
Q

In individual deposits in or make contributions to a annuity during the pay in or

A

accumulation phase

29
Q

As the contract owner receives the initial periodic installment the policy owner is now know as a

A

Annuitant

30
Q

The interest earned on the principal is

A

Tax deferred

31
Q

Receives tax deferral on interest but no tax deductions on premiums or yearly tax savings on through salary reduction.

A

none qualified annuity

32
Q

If a policy owner dies or becomes disabled funds can be with drawn without a penalty.

A

annuity

33
Q

Parties involved in a annuity contract

A

Contract owner, annuitant and beneficiary

34
Q

If a annuitant dies with no beneficiary listed what happens

A

proceeds will be paid to the policy owners estates

35
Q

Constant payment that funds the annuity each year.

A

Level Premium ( periodic premium annuity )

36
Q

Premiums that may be variable amounts each year

A

Flexible premium annuity ( periodic premium annuity )

37
Q

What determines annuity premiums

A

interest rate paid, contributions or accumulations and settlement options

38
Q

generate an income stream to the annuitant as soon as it is purchased.

A

immediate annuity 30 days after funded( only lump sum premiums)

39
Q

Does not the permit the contract holder to make any additional payments9 No accumulation period )

A

Single premium annuity

40
Q

may be funded with any type of premium and does include a accumulation period

A

Deferred Annuity

41
Q

Lengthy time between when the contract is purchase and when the income or annuity phase begins

A

Deferred Annuity

42
Q

emphasis safety of principal asset acclamation and tax deferral on interest

A

Deferred Annuity

43
Q

Guarantees a pre determined income or level payment amount which is paid each month for life

A

Fixed Annuity

44
Q

Guarantees a safety of principal as long the insurer remains solvent

A

Fixed Annuity

45
Q

Invest in safe conservative investments

A

Fixed Annuity

46
Q

annuity generally consist of two separate accounts including general and separate account

A

Variable annuity

47
Q

Funds invested in a separate account that are invested in equity products such as stocks and bonds

A

Variable annuity

48
Q

Classified by the length of time the annuitant will receive income, Provide income to the recipient for life with no refund

A

Pure Life annuity

49
Q

No survivorship. protects against outliving ones income

A

Pure Life annuity

50
Q

Pays a benefit for life but pays a survivor benefit if the annuitant dies before the benefit period (i.e) 10 years

A

Straight Life Annuity with period certain

51
Q

an option an annuity owners may add to there variable retirement annuities

A

guaranteed minimum withdraw l rider

52
Q

An annual premium retirement annuity contract is characterized by

A

High Loads

53
Q

All of the following statements regarding annuities are true EXCEPT.

A

Annuities may only be funded with flexible premiums

54
Q

Which of the following is true regarding a cash refund classification of an annuity

A

The interest received as part of the refund is taxable in the same year received

55
Q

An annuity is different from life a insurance contract an each of the following ways EXCEPT

A

An Annuity is characterized as pre paid financing were life insurance is characterized as a pre paid premium

56
Q

Bob desires an annuity that will provide him with periodic income for a short period of time with out the life guarantee of income of income. Which of the following will help him achieve this objective.

A

Annuity certain

57
Q

Alice leaves 50,000 each to her two twin grandchildren George and Gracie. Each one purchases a annuity with a life option. Which of the following is true concerning this statement.

A

George monthly benefit will be greater than Gracie

58
Q

Which of the following may take a loan or distribution from a fixed annuity

A

Contract Owner

59
Q

The primary purpose of straight life annuity is to protect against

A

Superannuation

NY Life and Health Insurance (12 decks)

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