QUESTION 21

Premiums for policies with waiver of premium rider is higher.

True

False

QUESTION 22

The net payment cost index is an interest-adjusted cost index that assumes policy is surrendered at the end of the policy period.

True

False

QUESTION 23

When policyowner use the paid-up additions options to purchase single premium insurance, the insured needs to show evidence of insurability.

True

False

QUESTION 24

Dividends earned during the year of death and paid as a part of the death claim are called postmortem dividends.

True

False

QUESTION 25

Suppose a policyowner has borrowed $8000 from her cash value and was only able to pay back $2000. She is unable to continue paying premiums and chooses the extended term option. The cash value of the original policy was $20,000. Its face value was $50,000. In this case, the single premium available for the extended term policy is $14000.

True

False

QUESTION 26

Convertible term policies are suitable for young families with limited financial resources.

True

False

QUESTION 27

The new policy paid with reduced paid-up insurance Nonforfeiture option does not have cash value.

True

False

QUESTION 28

The return of premium rider is often offered as a sales tool.

True

False

QUESTION 29

The type of insurance purchased as a paid-up addition is usually restricted to the same type as provided in the original policy.

True

False

QUESTION 30

In some states, in order to avoid discrimination, Females pay the same premium as males for their annuity, when other factors being equal.

True

False