OH-Life-Agent-Series-11-44 Exam Dumps - OHIO Life Insurance Agent Series 11-44

Whole life insurance policies provide a death benefit that is generally income tax-free to the beneficiary. This tax advantage is one of the key benefits of life insurance. In contrast, distributions from annuities and qualified retirement plans may be subject to income tax.

According to the Ohio Life Insurance Study Guide:

"Life insurance death benefits are typically received income tax-free by the beneficiary, providing financial protection without tax liability."

The grace period in a life insurance policy is a specified duration after the premium due date during which the policy remains in force, even if the premium has not been paid. According to the Ohio Revised Code, every life insurance policy issued in the state must contain a provision for a grace period of one month (not less than 30 days) for the payment of every premium after the first. During this period, the insurance coverage continues, and if the insured dies within the grace period, the overdue premium may be deducted from the death benefit.

Reinsurers form a separate segment of the insurance industry by providing coverage to primary insurance companies. This process, called reinsurance, allows insurers to reduce their exposure to large losses by sharing risks with another company. This enhances the stability and solvency of the insurance system.

TheWaiver of Premiumrider does not increase the death benefit amount. Instead, it waives the policyholder's obligation to pay premiums if they become totally disabled, ensuring the policy remains in force during the period of disability.

In contrast:

Cost of Livingrider adjusts the death benefit to keep pace with inflation, thereby increasing the benefit amount over time.

Accidental Death Riderprovides an additional benefit if the insured dies due to an accident, effectively increasing the total payout.

Guaranteed Insurabilityrider allows the policyholder to purchase additional coverage at specified times without undergoing a medical exam, thus potentially increasing the death benefit.

When a life insurance policyholder takes a loan against the cash value of the policy, it accumulates interest. If the insured dies with the loan unpaid, the insurance company deducts both the principal and accrued interest from the death benefit before paying it to the beneficiary. This is standard practice in permanent life insurance policies.