Irrevocable beneficiary
A policyowner is prohibited from making any changes to the policy without the beneficiary's written consent under which beneficiary designation?
contingent beneficiary
Where would policy proceeds be paid if both the insured and primary beneficiary were killed in the same accident?
Specified amount of money
What does a life insurance policy guarantee to the stated beneficiary upon the death of the insured?
Cost
Which of these is affected by the frequency of an insurance policy's premium payments?
people and time
Mortality is calculated by using a large risk pool of
the insured outlived the beneficiary(This allows the proceeds to go to the contingent beneficiary.)
If the beneficiary dies from the same accident as the insured individual, the insurer will proceed as if
have premiums that are averaged over the policy period
Level premium term life insurance policies
Monthly
Over the course of a year, which premium payment mode is most expensive?
To the children born of my union with Ned Jackson
An example of naming a beneficiary by class would be
Class designation
Naming a contingent beneficiary as "all surviving children" is described by which term?
Viatical settlement agreement(Viatical settlement agreements typically include a percentage payment of the death benefits to the policyowner prior to the death of the insured.)
A policyowner can receive a percentage payment of the death benefits prior to death by using what kind of contract?
from insurer to insurer and no cash is received by the policyowner
A tax-free Section 1035 Exchange of a life insurance policy to a different policy is permitted if it occurs
Mortality costs
What would be an expense factor in an insurance program?
After first premium is paid, the face amount may be available to the beneficiary(An immediate estate can be created because the face amount may be available to the beneficiary after the first premium is paid.)
How does life insurance create an immediate estate?
Individual
Which type of beneficiary should be named if the insured wants to give explicit directions on how the policy proceeds should be paid?
Spendthrift Clause
Which of these ensures that proceeds of a life insurance policy will be free from attachment or seizure by the beneficiary's creditors?
Increases(As the premium payment frequency increases, the total amount of premium paid for an insurance policy increases.)
What happens to the total amount of premium paid for an insurance policy when the payment frequency increases?
Reduced death benefit prepayment(The primary feature of a viatical settlement is the prepayment of a reduced death benefit.)
What is the primary feature of a viatical settlement?
Income tax is typically not owed on proceeds paid directly to a beneficiary(One of the major tax advantages of life insurance is that the beneficiary generally does not pay income tax on the proceeds.)
Which of these is considered a major tax advantage of life insurance?