Provisions, Riders, Options

Question 1

Acronym for Exclusions

Answer 1

WASH

Question 2

What are the exclusions?

Answer 2

War
Aviation
Suicide
Hazardous Hobbies

Question 3

Another way to say Hazardous Hobbies

Answer 3

Avocation

Question 4

By the head

Answer 4

Per Capita

Question 5

By the bloodline

Answer 5

Per stirpes

Question 6

Disability Riders acronym

Answer 6

Waiver of premium
Waiver of cost of insurance
Payor benefit
Disability income

Question 7

Waiver of premium

Answer 7

If policyowner becomes disabled for more than 6 months, the premium is waived.

Question 8

Waiver of cost of insurance

Answer 8

Only used with universal life. Waives the cost of insurance (mortality charge)

Question 9

Payor benefit

Answer 9

Juvenile policy

Question 10

Disability income

Answer 10

Pays your monthly income and waiver of premium if you are disabled. Ex) Aflac

Question 11

Additional insured riders

Answer 11

Children
Other
Friends
Spouse

Question 12

Children Rider

Answer 12

Term rider that converts to whole life at age 21 without proving insurability.

Pay the same amount no matter how many kids.

“Jumping juvenile”

Question 13

Other rider

Answer 13

Non-family
Used for key persons/business

Question 14

Family Rider

Answer 14

Equal amount per person

Question 15

Increasing Riders that change the death benefit

Answer 15

“ICRAG”

Increasing
Cost of living
Return of premium
Accidental death
Guaranteed insurability

Question 16

Accidental death rider qualifications

Answer 16

Must happen within 90 days of accident
Cannot be at fault

Question 17

Non-Forfeiture options

Answer 17

Non-forfeiture
Reduced paid up
Extended
Cash surrendar

Question 18

Reduced paid up

Answer 18

Lasts the longest (age 100)

Question 19

Extended term

Answer 19

Has the greatest amount of coverage (D.B, proceeds, face amount)

Question 20

Cash surrender

Answer 20

Ends immediately

Question 21

Dividend Options

Answer 21

Do - dividend options
C - cash “dividend check”
R - reduction of premium
A - accumulation at interest
P - paid up options/insurance
P - paid up additions
O - one year term

Question 22

Reduction of premium

Answer 22

Lowers next year’s premium by the dividend amount

Question 23

Accumulation at interest

Answer 23

Like a savings account (taxable)

Question 24

Paid up options/insurance

Answer 24

Paying the life insurance up early with dividends

Question 25

Paid up additions

Answer 25

Buy more of the same kind of life insurance with the dividend.

Question 26

One year term

Answer 26

Buy an additional one year of term insurance

Question 27

Settlement options

Answer 27

C - cash
L - life income
I - interest only
F - fixed period
F - fixed amount

Question 28

Cash settlement

Answer 28

Payment (lump sum)
Not taxable to the beneficiary
Automatic choice

Question 29

Life income also known as

Answer 29

Annuity

Question 30

Life income

Answer 30

Use the death benefit to buy annuity

Question 31

Life income types

Answer 31

Single/straight/pure life
Refund life
Life with period certain
Joint and survivor

Question 32

Single/straight/life

Answer 32

Only of the life of the beneficiary

Question 33

Refund life

Answer 33

For the life of beneficiary or refunded to another beneficiary.

Question 34

Life with period certain

Answer 34

For the life of a beneficiary or paid out over time to another beneficiary.

Question 35

Joint and survivor

Answer 35

Pays two beneficiaries for their life, upon 1st death, the second now gets 2/3.

Question 36

Interest only

Answer 36

Beneficiary #1 gets interest only
Beneficiary #2 gets the death benefit (at 21)
*temporary option

Question 37

Fixed period installments aka annuity certain

Answer 37

Depletes funds over a fixed period

Pays a 2nd beneficiary if the 1st dies

Question 38

Fixed amount installments

Answer 38

Pays fixed amount until proceeds are exhausted.

Pays a 2nd beneficiary if the 1st dies.