WFG 4 – 5 QUESTIONS AND ANSWERS
Quarterly premiums payment increase the annual cost of insurance because - Answers
-interest to the insurer is decreases while the administrative costs are increased
A policyowner is able to choose the frequency of premium payments through what
policy feature? - Answers -Premium mode
c is trying to determine whether to convert he convertible term life policy to whole life
insurance using her original age or attained age. What factor would affect her decision
the most? - Answers -the cost
Which of the following statements is CORRECT regarding the tax treatment of a lump-
sum payment paid to a life insurance policy's primary beneficiary? - Answers -All
proceeds are income tax free in the year they are received
Which of the following best describes a contingent beneficiary? - Answers -a person
designated by the insured to receive policy proceeds in the event that the primary
beneficiary dies before the insured.
M purchased an Accidental Death and Dismemberment (AD&D) policy and named his
son as beneficiary. M has the right to change the beneficiary designation at anytime.
What type of beneficiary is his son? - Answers -Revocable
P and Q are married and have three children. P is the primary beneficiary on Q's
Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent
beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly.
The Accidental Death benefits will be paid to: - Answers -P only
The Common Disaster clause provides that if both the insured and the sole named
beneficiary were to die in a common accident, which of the following is true? - Answers
-This clause provides the payment of proceeds to the insured's estate
A policyowner is allowed to pay premiums more than once a year under which
provision? - Answers -Mode of Premium
If the insured and primary beneficiary are both killed in the same accident and it cannot
be determined who died first, where are the death proceeds to be directed under the
Uniform Simultaneous Death Act? - Answers -Insured's contingent beneficiary
A policyowner would like to change the beneficiary on a Life insurance policy and make
the change permanent. Which type of designation would fulfill this need? - Answers -
Irrevocable
Quarterly premiums payment increase the annual cost of insurance because - Answers
-interest to the insurer is decreases while the administrative costs are increased
A policyowner is able to choose the frequency of premium payments through what
policy feature? - Answers -Premium mode
c is trying to determine whether to convert he convertible term life policy to whole life
insurance using her original age or attained age. What factor would affect her decision
the most? - Answers -the cost
Which of the following statements is CORRECT regarding the tax treatment of a lump-
sum payment paid to a life insurance policy's primary beneficiary? - Answers -All
proceeds are income tax free in the year they are received
Which of the following best describes a contingent beneficiary? - Answers -a person
designated by the insured to receive policy proceeds in the event that the primary
beneficiary dies before the insured.
M purchased an Accidental Death and Dismemberment (AD&D) policy and named his
son as beneficiary. M has the right to change the beneficiary designation at anytime.
What type of beneficiary is his son? - Answers -Revocable
P and Q are married and have three children. P is the primary beneficiary on Q's
Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent
beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly.
The Accidental Death benefits will be paid to: - Answers -P only
The Common Disaster clause provides that if both the insured and the sole named
beneficiary were to die in a common accident, which of the following is true? - Answers
-This clause provides the payment of proceeds to the insured's estate
A policyowner is allowed to pay premiums more than once a year under which
provision? - Answers -Mode of Premium
If the insured and primary beneficiary are both killed in the same accident and it cannot
be determined who died first, where are the death proceeds to be directed under the
Uniform Simultaneous Death Act? - Answers -Insured's contingent beneficiary
A policyowner would like to change the beneficiary on a Life insurance policy and make
the change permanent. Which type of designation would fulfill this need? - Answers -
Irrevocable
