Cash surrender terminates the policy and pays the available cash surrender value.
Example: A client or producer applies this rule in a policy situation. The correct concept is Cash surrender. Cash surrender terminates the policy and pays the available cash surrender value.
PTH original exam-prep item • Original practice item
The death benefit is paid to the beneficiary designated under the policy, subject to policy terms and assignments.
Example: A client or producer applies this rule in a policy situation. The correct concept is Designated beneficiary. The death benefit is paid to the beneficiary designated under the policy, subject to policy terms and assignments.
PTH original exam-prep item • Original practice item
Reduced paid-up uses cash value as a single premium for a lower face amount of paid-up permanent coverage.
Example: A client or producer applies this rule in a policy situation. The correct concept is Reduced paid-up. Reduced paid-up uses cash value as a single premium for a lower face amount of paid-up permanent coverage.
PTH original exam-prep item • Original practice item
Outstanding policy loans and accrued interest generally reduce the amount payable at death.
Example: A client or producer applies this rule in a policy situation. The correct concept is Reduces the proceeds payable. Outstanding policy loans and accrued interest generally reduce the amount payable at death.
PTH original exam-prep item • Original practice item
Extended term generally preserves the original face amount for a limited term using the cash value.
Example: A client or producer applies this rule in a policy situation. The correct concept is Extended term. Extended term generally preserves the original face amount for a limited term using the cash value.
PTH original exam-prep item • Original practice item
Lump-sum settlement pays the available proceeds in one payment.
Example: A client or producer applies this rule in a policy situation. The correct concept is Lump sum. Lump-sum settlement pays the available proceeds in one payment.
PTH original exam-prep item • Original practice item
The cash dividend option pays the declared dividend directly to the owner.
Example: A client or producer applies this rule in a policy situation. The correct concept is Cash. The cash dividend option pays the declared dividend directly to the owner.
PTH original exam-prep item • Original practice item
With fixed period, the chosen number of years determines the installment schedule.
Example: A client or producer applies this rule in a policy situation. The correct concept is The selected time period. With fixed period, the chosen number of years determines the installment schedule.
PTH original exam-prep item • Original practice item
The premium-reduction option uses dividends to reduce the amount the owner must pay.
Example: A client or producer applies this rule in a policy situation. The correct concept is Reduce premium. The premium-reduction option uses dividends to reduce the amount the owner must pay.
PTH original exam-prep item • Original practice item
Fixed amount pays a chosen amount periodically until principal and interest are exhausted.
Example: A client or producer applies this rule in a policy situation. The correct concept is The selected periodic dollar amount. Fixed amount pays a chosen amount periodically until principal and interest are exhausted.
PTH original exam-prep item • Original practice item