When comparing life insurance to an annuity, an annuity:

a. Protects against the annuitant living too long

b. Provides tax-free payments for the lifetime of a beneficiary

c. Creates a lump sum benefit to be paid upon the annuitant's death

d. Guarantees a death benefit upon the insured's death

Answer: A

Life Insurance

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The voluntary relinquishment of a legal right is called
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The pro rata liability clause is designed to protect the principle of
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What is the benefit of choosing extended term as a nonforfeiture option?
All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT
All of the following statements concerning dividends are true EXCEPT:
All of the following are true regarding rebates EXCEPT
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All of the following are elements of an insurance policy EXCEPT
What would be an expense factor in an insurance program?
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