Sigh

Question 1

Policyowner chooses one of the following Nonforfeiture options

Answer 1

Cash surrender value reduced paid up ins or extended term

Question 2

Table showing Nonforfeiture values for minimum of 20 years must

Answer 2

Be included in the policy

Question 3

Once this option is selected insured is no longer covered
Excess is taxable as ordinary income if value exceeds premiums paid

Answer 3

Cash surrender value

Question 4

Fee is charged and cannot be reinstated

Answer 4

Surrendered for cash value

Question 5

Automatic nonfortfeiture option same face amount shorter term of coverage

Answer 5

Extended term

Question 6

at end of 15 years
Value of 8100 can be used as single premium to purchase paid up insurance of same type as original policy. Doesnt have to pay premiums while still retaining some amount of life insurance

Answer 6

Reduced paid up option 21750

Question 7

Indicates option to use policy’s cash value to purchase in single premium in amount equal to policy’s face value of 50000
Ins determines 81000 is worth 18 years and 8 days of 50000 of protection

Answer 7

Extended term option

Question 8

Return of excess premiums therefore not taxable when paid to policyowner

Answer 8

Dividends

Question 9

First dividend could be paid as early as first policy anniversary

Answer 9

Must occur no later than end of third policy year

Question 10

Policyowner pays annual premium of 1000 and insurer declares a 100 dividend

Answer 10

Owner would pay 900 premium that year

Question 11

When can policyowner withdraw dividends

Answer 11

Anytime

Question 12

Although dividends themselves are not taxable

Answer 12

Interest on dividends is taxable to policyowner when credited even if no interest

Question 13

Used to purchase a single premium policy in addition to face amount of permanent policy

Answer 13

Dividends

Question 14

Amount of additional coverage purchased with dividend is based on

Answer 14

Insureds attained age

Question 15

If insured had a continuous premiums whole life policy paid to age 100

Answer 15

Using the paid up option the owner is able to pay up the policy early

Question 16

If insured dies during one tear term

Answer 16

Beneficiary recs both death benefit of original policy and death benefit of one year term ins

Question 17

Methods used to pay death benefits to a beneficiary upon insureds death or endowed benefit if insured lives to endowment date

Answer 17

Settlement options

Question 18

May change option at any time during life of insured

Answer 18

Settlement option

Question 19

If no selection made of settlement option

Answer 19

Beneficiary will choose at time of insureds death

Question 20

Settlement options are Triggered by insureds death or

Answer 20

Age 100