Ohio Department of Insurance Updated OH-Life-Agent-Series-11-44 Exam Questions and Answers by elsie-mae

Life insurance provides aguaranteed death benefit, which is aspecified sum of moneypaid to the named beneficiary upon the death of the insured.

"The primary function of life insurance is to provide a guaranteed amount of money to the beneficiary upon the death of the insured."

A Cost of Living Adjustment (COLA) rider is an optional feature that can be added to a life insurance policy to help protect the death benefit against inflation. This rider automatically increases the policy's face amount periodically, typically in line with the Consumer Price Index (CPI), ensuring that the purchasing power of the death benefit remains consistent over time.

Paid-up additions (PUAs) are a dividend option in whole life insurance policies that allow policyholders to use dividends to purchase additional amounts of paid-up life insurance. These additions increase both the policy's cash value and death benefit. Each paid-up addition is a miniature whole life policy that requires no further premiums and participates in future dividends. This compounding effect can significantly enhance the policy's value over time. Therefore, the correct answer is C.

Universal life insurance policies offer flexible premium payments and adjustable death benefits. One of the features of universal life policies is the ability to make partial surrenders or withdrawals from the policy's cash value without terminating the policy. This allows policyholders to access funds for various needs while maintaining life insurance coverage. Therefore, the correct answer is B