Life Insurance 08. Premiums Flashcards
1
Q
a. When is the CONVERSION PERIOD active?
A
To the earliest of the Initial Term Period or the Policy Anniversary after Insured’s 65th birthday. NO CONVERSIONS WILL BE ALLOWED AFTER ATTAINED AGE 65.
2
Q
- What is the INITIAL TERM PERIOD for this policy?
A
30 years. Coverage is renewable annually thereafter, but NOT BEYOND THE EXPIRATION DATE.
3
Q
- When is the EXPIRATION DATE for this policy?
A
5-28-2058 (42 years from issue date)
4
Q
- What is the initial annual premium?
A
$1525.00
5
Q
- What is the FACE AMOUNT of the policy?
A
$250,000
6
Q
- What is the total initial MODAL PREMIUM?
A
$134.20
7
Q
- What is the annual penalty for paying monthly (as opposed to one annual payment)?
A
$85.40
This is a penalty of 5.6% annual
8
Q
- How much do I pay for the ACCELERATED DEATH BENEFIT ENDORSEMENT?
A
I DON’T HAVE THIS ENDORSEMENT.
9
Q
- What is the DIRECT BILL QUARTERLY amount?
A
$396.50. This includes a penalty of $61.00 per year. This is a penalty of 5%.
The DIRECT BILL SEMI-ANNUAL Payment includes the same penalty.
10
Q
- The Initial Annual Premium of $1,525 includes an annual fee of:r
A
$50.00
This is a fee of 3.39% of the total of $1,475.00
11
Q
End
A
End
