Texas Life Insurance Exam with Questions and Answers 2

Texas Life Insurance Exam with Questions and Answers Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early? a) Paid-up additions b) Dividend Accumulation option c) Paid-up option d) Accumulation at Interest ANSWER c) Paid-up option All of the following are true regarding a decreasing term policy EXCEPT a) The death benefit is $0 at the end of the policy term. b) The contract pays only in the event of death during the term and there is no cash value. c) The face amount steadily declines throughout the duration of the contract. d) The payable premium amount steadily declines throughout the duration of the contract. ANSWER d) The payable premium amount steadily declines throughout the duration of the contract.