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

An irrevocable beneficiary has a vested interest in the life insurance policy. This means that the policyowner cannot change the beneficiary designation, take loans, or surrender the policy without the written consent of the irrevocable beneficiary. This designation provides strong protection for the beneficiary’s interest.

Key person insurance is purchased by a business on the life of a key employee—someone whose knowledge, work, or overall contribution is essential to the business’s success. If the key employee dies or becomes disabled, the policy pays a benefit to the company to offset lost income, training of replacements, and potential business disruption.

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."