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

Nonforfeiture provisions in whole life insurance policies provide options to the policyholder if they stop paying premiums. One such option is extended term insurance, where the policy's cash value is used to purchase term insurance with the same face amount as the original policy for as long a period as the cash value allows.

According to the Ohio Life Insurance Study Guide:

"Under the nonforfeiture provision, a policyholder may choose extended term insurance, which uses the policy's cash value to provide term coverage equal to the original face amount for a limited time."

In Ohio, when a life insurance application is submitted without the initial premium payment (i.e., not prepaid), the coverage does not become effective immediately. Instead, the policy becomes effective on the date the policy is delivered to the applicant and the first premium is paid, provided the applicant's health status remains unchanged. This ensures that the insurer has received both the necessary payment and confirmation of the applicant's insurability before coverage begins.

According to the Ohio Life Insurance Study Guide:

"If the initial premium is not paid with the application, coverage becomes effective upon delivery of the policy and payment of the first premium, assuming the applicant's health has not changed."

Alife annuity certainensures that payments will continue for aspecified periodeven if the annuitant dies before that time. If the annuitant dies early, the payments go to a beneficiary for the remaining period.

"An annuity certain guarantees payment for a fixed period, regardless of whether the annuitant is alive for the entire period. If death occurs, payments continue to a named beneficiary."