When will the insured be entitled to a cash benefit?
A cash benefit will be produced if the insured is alive at the end of the policy period d. Temporary insurance needs to be met When would evidence of insurability be required for a person already covered with a variable universal life policy?
When does the insured stop making payments under a thirty-payment whole life policy?
When does the insured stop making payments under a thirty-payment whole life policy? a. At the time of death or 30 years after the policy's inception, whichever comes first
Is surrendering a whole life insurance policy taxable?
The gain is not taxable but a penalty is assessed d. Surrendering an MEC is considered a tax and penalty-free transaction A nonparticipating whole life insurance policy was surrendered for its $20,000 cash value.
True or False: Life Insurance policies will replace your income when you die
This answer is false. The death benefit that comes with most term and whole life policies does cover the deceased's earnings in case they die while actively working for their company, but it doesn't necessarily make up for lost wages from disability during the same period of time.
True or False: You can't borrow against your Cash Value Life Insurance policy
The answer to this is false. Many cash value life insurance plan holders have the option to take loans from their policies at interest rates normally higher than what they'd receive if they cashed out their funds in an alternative way, such as for non-medical reasons.
What are the Non Medical Reasons I Can Use to Withdraw My Cash Value?
You can withdraw your cash value for any non-medical reason. Some people use their policy's cash values to help pay off high interest credit card debt, student loans, or even buy a house.
True or False: Term Life Insurance is less expensive than Whole Life Insurance coverage
The answer is true. Term life insurance costs less than whole life or universal policies because it's only designed to provide the death benefit during the term of coverage. This could be as little as one year up to 30 years depending on how long you choose.
True or False: A Universal Life Insurance Policy will cost more over time compared to Whole Life Insurance Coverage
This statement is false for most individuals buying their first-time life insurance policy at age 35 or older, who qualify medically and have also excellent credit scores. The cheaper "whole" rates quoted by agents can work well for you when you’ve had high health ratings all of your life and haven’t had any lapses in coverage.
True or False: Life Insurance is only worth it if you have children under 18 years old
The answer is false. Life insurance isn't just for parents with young children under 18 years of age, it's a financial tool that can benefit anyone who wants to protect their loved ones against the unexpected loss of income after death. This includes business owners.
What types of Life Insurance are Available?
There are three main forms of life insurance: term, universal, and whole. Term coverage can be purchased for a specific period (for example 20 or 30 years) and is the least expensive option because it's temporary in nature.
