Phoenix is the owner of Recycle Plus Inc. a successful recycling company. Phoenix earns over $1 million annually and currently has a $3 million universal life (UL) insurance policy through Stardust Life. After meeting with his insurance agent Leroy, he decides to apply for another UL policy for an additional $4 million death benefit. Stardust Life has a retention limit of $5 million. Assuming that Phoenix is insurable, how will Stardust Life handle the application? Select one correct answer from the list 1. They will agree to insure him for an additional $2 million but he will have to apply for the extra $2 million with another insurance company. 2. They will agree to insure him for an additional $2 million and they will ask a reinsurer to insure him for the extra $2 million. 3. They will agree to insure him for $4 million. They will refuse to insure him, and he will have to apply for insurance elsewhere. 4. 27 O O Three years ago, Douglas purchased a whole life insurance policy with numerous supplementary benefits and riders. Today, he meets with his doctor who informs him that he has late-stage colon cancer and has only a few months to live. Even with surgery, his chances of survival are low. Douglas calls his insurance agent, Penny, to ask her what he should do to obtain a benefit immediately. What should Penny advise him to apply for? Select one correct answer from the list 1. Dread disease benefit. 2. Terminal illness benefit. 3. Policy loan. 4. Policy withdrawal. ООО C
Phoenix is the owner of Recycle Plus Inc. a successful recycling company. Phoenix earns over $1 million annually and currently has a $3 million universal life (UL) insurance policy through Stardust Life. After meeting with his insurance agent Leroy, he decides to apply for another UL policy for an additional $4 million death benefit. Stardust Life has a retention limit of $5 million. Assuming that Phoenix is insurable, how will Stardust Life handle the application? Select one correct answer from the list 1. They will agree to insure him for an additional $2 million but he will have to apply for the extra $2 million with another insurance company. 2. They will agree to insure him for an additional $2 million and they will ask a reinsurer to insure him for the extra $2 million. 3. They will agree to insure him for $4 million. They will refuse to insure him, and he will have to apply for insurance elsewhere. 4. 27 O O Three years ago, Douglas purchased a whole life insurance policy with numerous supplementary benefits and riders. Today, he meets with his doctor who informs him that he has late-stage colon cancer and has only a few months to live. Even with surgery, his chances of survival are low. Douglas calls his insurance agent, Penny, to ask her what he should do to obtain a benefit immediately. What should Penny advise him to apply for? Select one correct answer from the list 1. Dread disease benefit. 2. Terminal illness benefit. 3. Policy loan. 4. Policy withdrawal. ООО C
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 23CE
Related questions
Question
Transcribed Image Text:Phoenix is the owner of Recycle Plus Inc. a successful recycling company. Phoenix earns over $1
million annually and currently has a $3 million universal life (UL) insurance policy through Stardust Life.
After meeting with his insurance agent Leroy, he decides to apply for another UL policy for an
additional $4 million death benefit. Stardust Life has a retention limit of $5 million.
Assuming that Phoenix is insurable, how will Stardust Life handle the application?
Select one correct answer from the list
1. They will agree to insure him for an additional $2 million but he will have to apply for the extra $2 million with
another insurance company.
2.
They will agree to insure him for an additional $2 million and they will ask a reinsurer to insure him for the extra
$2 million.
3. They will agree to insure him for $4 million.
They will refuse to insure him, and he will have to apply for insurance elsewhere.
4.
27
O
O
Transcribed Image Text:Three years ago, Douglas purchased a whole life insurance policy with numerous supplementary
benefits and riders. Today, he meets with his doctor who informs him that he has late-stage colon
cancer and has only a few months to live. Even with surgery, his chances of survival are low. Douglas
calls his insurance agent, Penny, to ask her what he should do to obtain a benefit immediately.
What should Penny advise him to apply for?
Select one correct answer from the list
1. Dread disease benefit.
2. Terminal illness benefit.
3. Policy loan.
4. Policy withdrawal.
ООО
C
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