Chapter Six Quiz Flashcards
Which of the following riders added to a life insurance policy can pay part of the death benefit to the insured to cover expenses incurred in a nursing or convalescent home?
Long-term care
If a life policy allows that policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a:
Guaranteed insurability rider
After a back injury, as insured is disabled for a year. His insurance policy carries a disability income benefit rider. Which of the following benefits will he receive?
Monthly premium waiver and monthly income
Which of the following annuity riders ensures that the owner will receive from an annuity at least the amount paid for the annuity?
Guaranteed Lifetime Withdrawal
Which of the following annuity riders ensures investors will receive a set amount of income annually?
Guaranteed Minimum Income Benefit
Which of the following statements is true concerning the Accidental Death Rider?
It will pay double or triple the face amount
What is the waiting period on a Waiver of Premium rider in life insurance policies?
6 months
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:
Cost of living rider
Which of the following statements best describes the effect the Accelerated Benefit provision would have on the benefits paid to the beneficiary?
It will decrease the benefits paid to the beneficiary
All of the following are features and requirements of the Living Needs Rider except:
Diagnosis must indicate that death is expected within 3 years
The Waiver of Cost of Insurance rider is found in what type of insurance?
Universal Life
A long stretch of national economic hardship causes a 7% rate of inflation. A policyowner notices that the face value of her life insurance policy has been raised 7% as a result. Which policy rider caused this change?
Cost of Living Rider
