An insurance contract must contain all of the following to be considered legally binding EXCEPT Beneficiary's consent. The four essential elements of all legal contracts are offer and acceptance; consideration; competent parties; and legal purpose. Equity indexed annuities Seek higher returns. Equity Indexed Annuities are not securities, but they invest on a relatively aggressive basis to aim for higher returns. Like a fixed annuity the Equity Indexed Annuity has a guaranteed minimum interest rate. The current interest rate that is actually credited is often tied to a familiar index like the Standard and Poor's 500. What is the other term for the cash payment settlement option? Lump sum. Upon the death of the insured, the contract is designed to pay the proceeds in cash, called a lump sum. Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that should one of them die prematurely, the other would be financially able to buy the interest of the deceased partner. What type of insurance policy may be used to fund this agreement? Any form of life insurance. Any form of Life insurance may be used to fund a buy-sell agreement. J purchased a $100,000 Joint Life policy on himself and his wife. Eight years later, he died in an automobile accident. How much will his wife receive from the policy? $100,000. In joint life policies, the death benefit is paid upon the first death only. All of the following are personal uses of life insurance EXCEPT Estate liquidation. Personal uses of life insurance include survivor protection, estate creation and conservation, cash accumulation, and liquidity. Which of the following is an example of a limited-pay life policy? Life Paid-up at Age 65. Limited Pay Whole Life premiums are all paid by the time the insured reaches age 65. The policy endows when the insured turns 100. It is the