Life, Health, and Disability

Question 1

Non Participating vs participating dividend options

Answer 1

non-participating: While life policy does not pay div
Participating: Whole life does pay div

Question 2

Dividend Options

Answer 2

CRAP-O
Cash
Accumulate Interest - company invest div, tax free up to client basis
Reduce Premiums
Paid-up Additions - purchase addtl year
One-yr term - adds term to policy face amount equal to CV

Question 3

Nonforfeiture options

Answer 3

Cash Surrender Value
Reduce paid up insurances
extended term insurance
accelerated death benefit

Question 4

Nonforfeiture options - Cash Surrender Value

Answer 4

Insured receives the accumulated cash value when terminating the life insurance policy. The cash surrender value is the cash value less surrender charges.

Question 5

Nonforfeiture options - Reduce paid up insurances

Answer 5

Insured receives the cash value in the form of a paid-up policy with a smaller face amount

Question 6

Nonforfeiture options - extended term insurance

Answer 6

insured receives the cash value in the form of a paid-up term policy for a specified duration, with the same face amount as the original policy.

Question 7

Nonforfeiture options - accelerated death benefit