Question 28

Jack Black is the policy owner and life insured of a 20-year term life insurance policy, with a $250,000 face value, on which he has named his spouse, Eden, as the beneficiary. Unfortunately, Jack Black is consistently late in the payment of his premiums, usually paying them about 3 weeks after the annual September 1 due date. This year, he missed the payment of $1,225 which was due September 1, but he remembered in mid-December. What are Jack Black's standard rights as of December 15?

Question 28 options:

	He could immediately apply for a reinstatement of the policy by paying the September 1st premium and potentially needing to provide evidence of good health
	He could pay the September 1 premium before the policy lapses at the end of the year
	He will have to forego the policy with no other options available
	He will be required to pull a credit bureau to ensure his credit circumstances are in good standing

Question 29

Rob owns an individual disability insurance policy with an annual premium of $3,500. The plan provides for a monthly benefit up to a maximum of $5,000. With regard to the taxation of Rob's disability policy, which of the following statements are true?

1.The $3,500 premium is eligible as a medical expense for the non-refundable tax credits

2. If Rob receives any benefits under the policy, the full amount will be treated as taxable income

3. The $3,500 is not tax deductible

4. If Rob receives any benefits under the policy, the benefit payment will be treated as non-taxable income

Question 29 options:

	1 and 2
	1 and 4
	2 and 3
	3 and 4

Question 30

Mike was the policy owner and life insured of a 20-year term life insurance policy, with a $500,000 face value, on which he had named his spouse, Rachel, as the beneficiary. Unfortunately, Mike was consistently late in the payment of his premiums, usually paying them about 20 days after the annual September 1 due date. This year Mike missed the payment of $2,445 which was due September 1, but he remembered in mid-October. On October 15, Mike died instantly when he was struck by a street car on his way to mail the overdue premium to the insurance carrier. How much will Rachel receive from the insurance policy?

Question 30 options:

	$497,555
	$497,708
	$500,000
	Nothing

Question 32

When discussing Group Insurance policy plans through an employer, the term "conversion" occurs when:

Question 32 options:

	The policy owner can convert to permanent insurance
	The proceeds of the policy are paid to its beneficiaries
	The proceeds of the policy become irrevocable and the policy owner forfeits their right to make all decisions regarding the policy
	The plan member terminates employment, they are given the opportunity to convert lost coverage up to a $200,000 maximum, to an individual life insurance policy without evidence of insurability