Author Question: Malcolm would like to purchase life insurance. He is concerned that he might need additional life ... (Read 123 times)

tatyanajohnson · **on:** Jul 11, 2018

Malcolm would like to purchase life insurance. He is concerned that he might need additional life insurance in the future and that he might be uninsurable at that time.

What provision can Malcolm add to his life insurance policy that will permit him to purchase additional life insurance at specified times in the future without providing evidence of insurability?
A) double indemnity rider
B) guaranteed purchase option
C) waiver-of-premium provision
D) accelerated death benefits rider

Question 2

Which of the following statements is (are) true concerning settlement options?

I. A straight life annuity provides the lowest amount of periodic income of all the life income options.
II. Fixed-period and fixed-amount are life income options.
A) I only
B) II only
C) both I and II
D) neither I nor II