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

In a viatical settlement, a policyholder sells their life insurance policy to a third party for a lump sum that is less than the policy’s death benefit but more than its cash surrender value. The buyer then becomes the policy’s beneficiary and receives the full death benefit upon the insured’s death.

When dividends are left to accumulate at interest with the insurance company, the interest earned on these dividends is considered taxable income. While the dividends themselves are generally not taxable, the interest they generate is subject to taxation.

According to the Ohio Life Insurance Study Guide:

"Dividends left to accumulate at interest are taxable as income in the year the interest is credited."

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.