Policy Riders, Provisions, Options and Exclusions

Question 1

Primary vs Contingent Beneficiaries

Answer 1

Primary: First person, group or entity to recieve death benefit
Secondary: Just like it sounds

Question 2

Revocable beneficiary

Answer 2

Has no rights in the policy during the insured’s lifetime

Question 3

Irrevocable beneficiary

Answer 3

Has vested interest in the policy.
The policyowner cannot change an irrevocable beneficiary designation without that person’s written consent

Question 4

Cash Surrender

Answer 4

Policy is surrendered
Cash value is paid out

Question 5

Extended term insurance

Answer 5

Cash value purchases single term policy

Question 6

Reduced paid-up insurance

Answer 6

Cash value purchases a single-premium permanant policy

Question 7

What is the maximum amount of time most states allow insurers to delay paying cash surrender values?

Answer 7

6 months