Which of the following dividend options will increase the death benefit?

• A. Paid-up additions.
• B. Accelerated endowment.
• C. Guaranteed insurability.
• D. Extended term.

Which of the following statements is TRUE regarding Waiver of Premium Rider?

• A. The insured will automatically become eligible for Accelerated Death Benefits.
• B. There will be no change in the policy ' s rates, benefits, or options other than that the insured no longer has to pay the premiums on the policy.
• C. The death benefit will be reduced by the amount of the unpaid premiums.
• D. The policy ' s cash value will continue to grow, but at a slower rate because the insured is no longer paying premiums.

Which is NOT a characteristic of a variable annuity?

• A. The money paid during the accumulation period is invested in a separate account.
• B. The contract owner bears the investment risk.
• C. An insurance license and securities registration are required for solicitation.
• D. The monthly income paid upon annuitization is fixed and guaranteed.

Which type of policy allows for premiums or benefit adjustments which are backed by equity investments?

• A. variable life
• B. variable universal life
• C. term life
• D. universal life

An adult child is the beneficiary of their parent ' s life insurance policy. What is the tax obligation for the funds paid to the child?

• A. The full amount is taxed, but the payments can be spread over a period of several years.
• B. The principal is not taxed, but any interest that accrues is taxed at rates applicable to interest from other sources.
• C. The full amount is taxed as regular income unless it is gifted to the beneficiary ' s children, in which case it is tax-free.
• D. It is not taxed if it is placed in a trust until the funds are withdrawn from the trust; then it is taxed as regular income.