1. All of the following are parties to a life insurance contract EXCEPT: I. Insurer II. Underwriter III. Beneficiary IV. Owner V. Insured VI. a. II only b. III only c. II, III, and V d. All are parties to a life insurance contract Study Online Instantly Click to Save 50% Now A beneficiary and the underwriter are not parties to a life insurance contract. An insured may be, but is not necessarily a party. A wife (owner) can take a policy out on her husband (insured), yet the husband is not a party to the insurance contract. 2. Mr. Smith, a whole life insurance policy holder, needs funds for his nursing home expenses. Which part of the policy could he access for these funds? a. The investment benefits b. The death benefits c. The annuity benefits d. The living benefits Life insurance policies can provide living benefits which means that the policy holder can use funds from the cash value as well as some or all of the death benefit amount prior to death. The amount that is taken from the death benefit will be subtracted from the amount received at the insured's death by the beneficiary. 3. James makes a good living and got a life insurance policy for the benefit of his wife. He recently experienced a lifechanging event with the birth of his daughter. James should: a. Cancel his life insurance policy to afford to support his new daughter. b. Decrease his life insurance policy death benefit to get a cheaper policy. c. Increase his life insurance policy death benefit. d. Stop paying premiums on his life insurance