Which settlement option pays only the earnings on the death benefit to a beneficiary?
D. Interest only
Emily has chosen to receive the payout from her husband's life insurance policy so that she will receive an income for the next 15 years. At the end of that time, the entire proceeds from the policy will have been paid out. Emily has selected the
B. fixed-period option
Which of the following statements about paid-up additions is TRUE?
D. The dividends are used to purchase additional insurance protection
All of the following statements about policy dividends are true EXCEPT
B. dividends can be guaranteed to be paid every year
Cash surrender, reduced paid up insurance, and extended term insurance are all examples of
C. nonforfeiture options
Heath has chosen to receive the payout from his wife's life insurance policy in such a way that he will have an income for the remainder of his life, regardless of how long he lives. Heath has selected the
C. life-income option
Jim has selected to receive only the interest from his mother's life insurance policy. When
Jim dies, his children will receive the lump-sum
benefit in addition to the benefit from his life
insurance policy. Jim has selected the
C. interest-only option
Walter is the beneficiary of his mother's life insurance policy. He wants to make sure the proceeds will last not only as long as he lives but also as long as his wife is alive. Walter should select the
D. joint and survivorship life income option
Of all of the life income options, which settlement option has the largest payment?
D. Life only
Which of the following is not a factor in determining the amount the beneficiary will receive each time a payment is made under the fixed amount option?
A. The capital amount
Carmen has selected to receive $10,000 per month until the principal and interest on her husband's life insurance policy have been paid out. Carmen has selected the
D. fixed-amount option
All of the following statements regarding the life only settlement options are correct EXCEPT
A. payments continue even if the beneficiary dies shortly after payments begin
Thomas has chosen to receive the settlement from his wife's $100,000 life insurance policy according to the life income option. Under the option he chooses, he will receive an income for his life and his daughter will receive payments if he dies before receiving $100,000 in income.
Thomas has selected a
A. refund annuity option
Which of the following is NOT a factor in determining the amount the beneficiary will receive each time a payment is made under the fixed period option?
A. The age of the beneficiary
Which of the following statements about reduced paid-up insurance option is NOT true?
C. The new protection is for the same amount as the original policy
