Policy Riders, Provisions, Options, and Exclusions
A terminally ill insured accelerates part of a policy's death benefit. What should the beneficiary expect at the insured's later death?
Answer and explanation
Answer: D. Accelerating proceeds prepays part of the death benefit during the insured's life. The later benefit is therefore generally reduced under the rider's terms rather than paid again in full.Source: Texas Department of Insurance — Life Insurance Guide — Financial implications > other ways to get cash; accelerated death benefit prepays proceeds
More policy riders, provisions, options, and exclusions questions
- A universal life policy carries a waiver of monthly deduction rider. How does that rider differ from a standard waiver of premium rider?
- A variable life owner takes a policy loan and leaves it outstanding. Which effect should the owner expect?
- A waiver of premium rider is in force and the insured becomes totally disabled. What does the rider do once the waiting period has been satisfied?
- A whole life owner needs extra protection only while a business loan is outstanding. Which addition most directly fits that limited-duration need?
- After a Texas life policy has been in force for 2 years during the lifetime of the insured, under what condition can the insurer contest a claim?
- An accidental death benefit (double indemnity) rider pays an additional death benefit under what circumstance?
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