LESSON 4: LIFE INSURANCE PREMIUMS, PROCEEDS AND BENEFICIARIES

Section 4.2 Review

If a beneficiary opts to receive interest only payments while the insurance company holds the policy proceeds, the insurer is restricted from paying a lower interest rate than the pre-established minimum rate.

	a)	True
	b)	False
CORRECTTRY AGAIN (Lesson 4.2.2)Your answer has been saved.

Under the fixed period option, if the insurer's earnings from the premium payments throughout the years are large enough to permit paying excess interest, the interest will be used to extend the payment period, not increase the scheduled payments.

	a)	True
	b)	False
CORRECTTRY AGAIN (Lesson 4.2.3)Your answer has been saved.

With the joint life income option, the proceeds may be paid to two beneficiaries in equal monthly installments.

	a)	True
	b)	False
CORRECTTRY AGAIN (Lesson 4.2.3)Your answer has been saved.

Accelerated benefit provisions are standard in most individual and group life insurance policies.

	a)	True
	b)	False
CORRECTTRY AGAIN (Lesson 4.2.4)Your answer has been saved.

A viatical settlement can be used when the insured is diagnosed with an illness or condition that is expected to end his/her life, usually within:

	a)	one year.
	b)	18 months.
	c)	two years.
	d)	three years.
CORRECTTRY AGAIN (Lesson 4.2.5)Your answer has been saved.

Among others, which of the following disclosures should be made when a policyowner applies for a life settlement transaction?

	a)	There are possible alternatives to the life settlement.
	b)	The transaction may have tax implications and advice should be sought from a qualified tax advisor.
	c)	The transaction may affect creditors' rights.
	d)	All of the above.
CORRECTTRY AGAIN (Lesson 4.2.6)Your answer has been saved.