Bob purchases a $50,000 5-year level term policy. All of the following statements about Bob's coverage are correct EXCEPT:

Bob purchases a $50,000 5-year level term policy. All of the following statements about Bob's coverage are correct EXCEPT:




A) If the insured lives beyond the five years, the policy expires and no benefits are payable.

B) if the insured dies after the specified five years, only the policy's cash value will be paid.

C) if the insured dies at any time during the five years, his beneficiary will receive the policy's face value.

D) the policy provides a straight, level $50,000 of coverage for five years.



Answer: B) if the insured dies after the specified five years, only the policy's cash value will be paid.

Comments

Post a Comment

Popular posts from this blog

Jim has been arrested for drunk driving. In order to be allowed out of jail before his court date, Jim will most likely need:

Jim has been arrested for drunk driving. In order to be allowed out of jail before his court date, Jim will most likely need: Answer: A bail bond Jim will most likely need to post bail to be allowed out of jail before his court date.  Bail is a set amount of money an arrested individual must pay the court to guarantee they will appear for their scheduled hearings and trial dates. By posting bail, Jim can secure his release from jail pending his court appearances. There are several options for posting bail: Cash Bail : Jim or someone on his behalf can pay the total bail amount in cash directly to the court. Once the case is resolved, the bail money is returned minus any fees or fines imposed by the court. Bail Bond : If Jim or his family cannot afford to pay the full bail amount, they may use a bail bond service. A bail bondsman typically charges a non-refundable fee, usually a percentage of the total bail amount, in exchange for posting the full bail amount on Jim's behalf. Th...
Read more

The insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. It was determined that the accident was his fault. The triple indemnity rider in the policy specifies that the death must not be contributed to by the insured in any manner. In this case, what will the policy beneficiary receive?

The insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. It was determined that the accident was his fault. The triple indemnity rider in the policy specifies that the death must not be contributed to by the insured in any manner. In this case, what will the policy beneficiary receive? a) $0 b) $50,000 (50% of the policy value) c) $100,000 d) $300,000 (triple the amount of policy value) Answer: c) $100,000
Read more