Which Of These Needs Is Met By Variable-Rate Life Insurance? Cash value, premiums, and death benefits may be modified with adjustable life insurance. It allows customers to modify their insurance coverage in response to changing life circumstances. Adjustable life insurance includes a savings component referred to as a “cash value account.”
Which requirements are met by variable life insurance?
Adjustable life insurance is a mix of term life and whole life insurance that allows policyholders to change policy elements, including the duration of protection, face value, premiums, and premium payment period. Cash value accounts, often known as “cash value” accounts, are a feature of adjustable life insurance plans.
Both policies are identical. Universal life insurance is sometimes known as adjustable life insurance.
What other alternatives are valid for an adjustable life policy?
A Modified Endowment Contract (MEC) is most accurately stated as follows: This is a Universal Life insurance example. How might survivorship life insurance benefit estate planning? Provide monies to assist with tax payment. In estate planning, survivorship life insurance policies are beneficial because they can offer funds to pay taxes on assets.
- A survivorship life policy is a sort of multiple protection coverage that pays on the death of the last individual “.
- The policy that pays out at the demise of the last individual under a multiple protective insurance is known as a survivorship life policy.
- What are the probable tax ramifications of a Modified Endowment Contract? Distributions made before to death will become taxable.
Pre-death payouts from a Modified Endowment Contract are susceptible to becoming taxable. What sort of life insurance allows for the modification of two policy features? Adjustable Life “. Adjustable Life lets the policyholder to modify both the premium and the face amount.
Which policy characteristic distinguishes a universal life policy from a full life policy? A flexible premium schedule “. Flexible premium schedule is the policy characteristic that distinguishes universal life from whole life insurance. A Modified Endowment Contract (MEC) is most accurately stated as follows: A Modified Endowment Contract (MEC) is a life insurance policy with cumulative cash values in excess of what the IRS permits.
Krista purchases a flat 10-year term life insurance policy with a $200,000 death payout. Which of the following is true? The face value and premium will stay unchanged for the duration of the 10-year term. In this case, the premium and face value will stay unchanged for the duration of the 10-year term.
To offer variable life insurance, an insurance producer must possess a securities license. A producer of life insurance must acquire a securities license in order to market variable annuities. Which of these riders will pay a death benefit in the event that the insured’s spouse passes away? A Family Term Insurance rider offers a death payment if the insured’s spouse passes away.
Variable Whole Life refers to a life insurance policy that has cash values that fluctuate based on the investing performance of equities. The cash value of a Variable Whole Life insurance fluctuates based on the investing performance of common stocks.
Similarities exist between variable life insurance and universal life insurance. Which of these characteristics is unique to variable universal life insurance? The policyholder has the option to choose the investment with the highest return. Only variable universal life insurance offers the option to choose the investment that will generate the highest return.
Which of these insurance does NOT accumulate monetary value? Term insurance does not accumulate financial value. Which of the following best reflects the outcome of a modified endowment contract that failed the seven-pay test? Distributions made before to death are normally taxable.
- Failure to satisfy the seven-pay test will likely result in pre-death payouts becoming taxed.
- The premium payments for a Universal life policy are NOT used for which of the following? The premium payments for a Universal life insurance policy are NOT invested in separate accounts.
- Regardless of the insured’s condition, a Renewable Term Life insurance policy can be renewed at a set date or age.
Regardless of the insured’s health, Renewable Term Life insurance assures that the policy can be renewed until a certain date or age. These assertions about whole life insurance are all untrue. EXCEPT Income taxes may be owing upon the surrender of a whole-life insurance.
When a whole-life insurance policy is surrendered, income taxes may be owed. This assertion is accurate. Peter’s insurance invests between 80% and 90% of the premium in traditional fixed income assets and the remaining premium in contracts connected to a specified stock index. What sort of strategy is this? Equity index permanent “.
Equity index whole life is the type of insurance where 80% to 90% of the premium is put in traditional fixed income assets and the remaining premium is invested in contracts connected to a specified stock index. When a declining term insurance is obtained, the premiums and death benefit decrease over time.
- A diminishing term policy is provided with steady premiums and a decreasing death benefit.
- Universal life is an insurance policy with a guaranteed interest rate and the opportunity to earn a rate that is higher than the promised rate.
- Universal life insurance provides a guaranteed interest rate with the opportunity to obtain a greater interest rate.
All of these options are applicable for an Adjustable Life Policy, save for the last. A nonforfeiture option may be utilized to boost the death benefit “. In an Adjustable Life Policy, one of the nonforfeiture choices cannot be used to increase the death benefit.
- What sort of life insurance allows for the modification of two policy features? Adjustable Life lets the policyholder to modify both the premium and the face amount.
- When a kid reaches a specific age, what happens to the coverage provided by a children’s term rider? Under a children’s term rider, when a kid reaches a specific age, he or she is no longer covered.
A Modified Endowment Plan (MEC) is best defined as a life insurance contract with accumulating cash values in excess of what the IRS permits. A renewable Term Life insurance policy permits the policyholder to renew the coverage. If Term Life insurance is renewable, the policyholder buys the right to renew the policy without providing evidence of insurability.
- TermThe premium for a Modified whole life insurance is TermThe premium for a Modified whole life policy is lower than regular whole life premiums for the first few years and then more than average thereafter.
- Term These are all features of a universal life insurance policy.
- EXCEPT Definition The universal life insurance policy does NOT have a predetermined surrender value.
Term Which of the following best reflects the outcome of a modified endowment contract that failed the seven-pay test? Definition Failure to satisfy the seven-pay test will likely result in pre-death payouts becoming taxed. Which of the following characterizes the outcome of a modified endowment contract that failed the seven-pay test? Definition Failure to satisfy the seven-pay test will likely result in pre-death payouts becoming taxed.
- Level premium Permanent insurance builds up a reserve that will ultimately match the policy’s face value.
- The premium payments for a Universal life policy are NOT used for which of the following? The premium payments for a Universal life insurance policy are NOT invested in separate accounts.
- Term These assertions about whole life insurance are all untrue.
EXCEPT Income taxes may be owing upon the surrender of a whole-life insurance “. When a whole-life insurance policy is surrendered, income taxes may be owed. This assertion is accurate. Term The statement that best captures the relationship between premiums and premium payment period for a whole life insurance policy is The shorter the payment time, the greater the premium”.
- The shorter the payment period for a whole life insurance, the greater the yearly premium.
- Term Peter’s insurance invests between 80% and 90% of the premium in traditional fixed income assets and the remaining premium in contracts connected to a specified stock index.
- What sort of strategy is this? Definition of “lifetime equity index” Equity index whole life is the type of insurance where 80% to 90% of the premium is put in traditional fixed income assets and the remaining premium is invested in contracts connected to a specified stock index.
Term When a diminishing term insurance is obtained, the death benefit decreases over time. The meaning of “level premiums” A diminishing term policy is provided with steady premiums and a decreasing death benefit. Universal life insurance combines a guaranteed interest rate with the opportunity to earn a greater rate than the promised rate.
Term What forms of life insurance are typically utilized to indemnify critical employees? Term, whole, and universal life insurance are defined “. Term, whole, and universal life insurance are the forms of life insurance typically utilized for key employee indemnification. Universal life refers to a life insurance policy that is subject to either a contract interest rate or a current yearly interest rate.
Term Donald is the primary insured and adds a children’s term rider to his life insurance policy. What are the benefits of including this rider? The capacity to convert a children’s term rider to permanent insurance without proof of insurability is a benefit of the rider.
- Term Which sort of multiple protection coverage pays out upon the demise of the final insured? A survivorship life policy pays out at the demise of the final beneficiary.
- Term Which of the following life insurance plans permits a surrender in part? Some universal life insurance plans provide a partial surrender.
what sort of conclusion? what are the most influential factors? Axial resolution based on pulse duration and frequency
Which of the following statements about adjustable life insurance is true? The face amount and premiums can be altered at the same time by the policyholder – Adjustable life insurance combines characteristics of both term and permanent coverage.
What exactly is a variable death benefit?
Can the death benefit of an adjustable life policy be changed? – Adjustable death benefit life insurance allows you to vary the amount of money paid out in the event of your death based on your coverage needs. If the rise is significant enough, you may be compelled to undergo a new medical examination and pay a higher premium.