Policy Riders, Provisions, Options, and Exclusions
A universal life owner wants to vary the timing and amount of premium payments. Which condition remains essential?
Answer and explanation
Answer: B. Flexible-premium life permits variation in payment amount or timing, but the owner must maintain enough funding to cover policy charges and keep coverage in force. Flexibility does not eliminate the cost of insurance.Source: National Association of Insurance Commissioners — Life Insurance Buyer's Guide — PDF page 5, Whole Life vs. Universal Life
More policy riders, provisions, options, and exclusions questions
- A policyowner wants disability protection on a flexible-premium universal life policy. Which rider most directly addresses the policy's recurring mortality charge?
- A policyowner wants level term coverage on a spouse under the owner's base life policy. Which rider is designed for that purpose?
- A policyowner's guaranteed insurability rider lists the birth of a child as an alternate option date. What may the owner generally do on that date?
- A producer describes a term rider added to a permanent life policy. Which statement avoids overstating what the rider provides?
- A proposed insured disclosed membership in the U.S. military on the application. Under the Compact standard, may the base policy exclude death solely as a result of war or military service?
- A return of premium rider is attached to a permanent life policy. What does the rider add to the amount payable at the insured's death?
590 Texas questions like this one.
Every answer explained, the ones you miss come back on a spaced schedule, and a plan built from your exam date.