Kayla buys a whole life policy when she is 40 and pays premiums on it until she is 60. She decides to retire at 60, has no dependents and no debts, and realizes she really doesn't need the death protection any longer
She is now concerned about generating a lifetime income during her retirement. What option does a whole life policy typically offer that could best help her with this financial need?
A) Forfeiture of coverage provision (she can surrender the policy and take the cash)
B) Paid up whole life option (use the cash value to buy a paid-up whole life with a lower face value)
C) Annuity conversion option (buy an annuity from the insurer with her cash value)
D) None of the above
C
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A department has budgeted monthly manufacturing overhead cost of $540,000 plus $3 per direct labor hour. If a flexible budget report reflects $1,044,000 for total budgeted manufacturing cost for the month, the actual level of activity achieved during the month was
a) 348,000 direct labor hours. b) cannot be determined from the information provided. c) 528,000 direct labor hours. d) 168,000 direct labor hours.
What would happen if a life insurance applicant is given a conditional receipt from an insurance agent and then dies the next day?
A) Claim will be denied by insurer B) Claim will be paid if money was received by the insurance company C) Claim will be paid if underwriter has received the application D) Claim will be paid if application is approved