What is Juvenile premium provision?Asked by: Bonita Hilpert DDS | Last update: February 11, 2022
Score: 4.7/5 (55 votes)
1. The payor benefit provision is also known as a juvenile premium provision, and is usually found in juvenile insurance policies where the insured is the child of the policyholder, and under 18 years of age.
What is juvenile protection provision?
Juvenile life insurance is permanent life insurance that insures the life of a child (generally under age 18). ... Juvenile life insurance, or child life insurance, is usually purchased to protect a family against the sudden and unexpected costs of a funeral and burial with much lower face values.
What is the waiver of premium provision?
What Is a Waiver of Premium Rider? A waiver of premium rider is an insurance policy clause that waives premium payments if the policyholder becomes critically ill, seriously injured, or physically impaired. Other stipulations may apply, such as meeting specific health and age requirements.
What is a juvenile whole life policy?
Children's whole life insurance, also called juvenile life insurance, is a permanent life insurance policy you can buy on your child. This policy can last the child's entire lifetime and accumulate cash value. Once the money is there, the value won't go down unless it's taken out through policy loans or withdrawals.
What is a payor benefit provision?
Payor Benefit — a provision under which premiums are waived if the person paying the premiums becomes disabled or dies. This option is often used when the insured is the child or spouse of the policyholder.
4 Life Insurance Policies Provisions, Options and Riders
How long does waiver of premium last?
The waiver of premium rider allows you to forgo premium payments if you become disabled and cannot work for six months or more.
What is premium mode?
Your mode of premium payment determines the frequency with which payments are made. It also determines the way in which you make payments, such as by cash, check, credit card, or another option.
What is the advantage of a waiver of premium provision in a life policy?
A waiver of premium for payer benefit prevents a permanent insurance policy from lapsing if the payor becomes disabled.
What is a level premium whole life policy?
Level-premium insurance is a type of term life insurance. With this type of coverage, premiums are guaranteed to remain the same throughout the contract, while the amount of coverage provided increases. ... The most common terms are 10, 15, 20, and 30 years, based on the needs of the policyholder.
What happens to the coverage under a childrens term rider when that child reaches a certain specified age?
What happens to the coverage under a children's term rider when that child reaches a certain specified age? Coverage is eliminated.
Which type of rider will waive the premium on a child's life insurance policy if the parent paying the premium dies?
Juvenile insurance may be sold with a payor benefit rider, which provides for waiving future premiums on the child's policy in the event of the death of the person who pays the premium.
Which of the following explanations best describes the purpose of the waiver of premium provision of a life insurance policy?
Which of the following explanations best describes the purpose of the waiver of premium provision of a life insurance policy? ... The correct answer is: It waives the insured's premiums if the insured is totally disabled before a specified age.
What is the face amount of a $50000 graded death benefit life insurance policy when the policy is issued?
At what point are death proceeds paid in a joint life insurance policy? Which statement regarding universal life insurance is correct? What is the face amount of $50,000 graded death benefit life insurance policy when the policy is issued? Under $50,000 initially, but increases over time.
What is a juvenile life insurance policy quizlet?
Juvenile life insurance. Coverage written on the life of a child or a minor. Survivorship Life Policy. insures two individuals and will pay the death benefit when the last insured dies.
What do you do with old whole life insurance?
- Surrender Your Policy for its Cash Value. ...
- Sell Your Policy. ...
- Withdraw Your Cash Value. ...
- Borrow Against Your Cash Value. ...
- Borrow Against Your Death Benefit. ...
- Receive an Accelerated Death Benefit. ...
- Annuitize Your Policy. ...
- Take Your Dividends Out in Cash.
What are the 3 types of life insurance?
There are three main types of permanent life insurance: whole, universal, and variable.
What are 4 types of whole life policies?
- Universal. Universal life insurance often is considered the most flexible of all of the whole life varieties that are available. ...
- Current Assumption. ...
- Excess Interest. ...
- Single Premium.
What are the 3 main types of insurance?
- Life insurance. As the name suggests, life insurance is insurance on your life. ...
- Health insurance. Health insurance is bought to cover medical costs for expensive treatments. ...
- Car insurance. ...
- Education Insurance. ...
- Home insurance.
Is waiver of premium rider essential while buying child insurance?
When it comes to your childs insurance, riders are especially important. ... There are a range of riders that you can add to an insurance policy. For example, there is the accidental death benefit, family income benefit, etc. When it comes to child insurance, however, waiver of premium rider is the most important.
Which of the following is true about the premium on the children's rider in a life insurance policy?
Which of the following is true about the premium on the children's rider in a life insurance policy? It remains the same no matter how many children are added to the policy: it is based on an average number of children.
When can a waiver of premium rider be added to a life insurance policy?
Depending upon the insurance company, the waiver of premium rider benefit may not go into effect until 6 consecutive months after you become disabled or ill (but may go into effect as soon as 4 weeks).
What is an example of a premium?
Premium is defined as a reward, or the amount of money that a person pays for insurance. An example of a premium is an end of the year bonus. An example of a premium is a monthly car insurance payment. An unusual or high value.
Which premium payment mode is most expensive?
For the same reason, monthly payments are often the most expensive payment mode. However, for companies that require automatic monthly payments through an electronic funds transfer, monthly payments may actually be less expensive.
Who has the right to change the premium mode?
The policyowner has the right to change the premium mode. the time period provided after the premium due date before a policy lapses.
What does it mean to waive insurance?
An insurance waiver is a document that includes the employee's “declaration that you have been offered a plan, however, have chosen to refuse” the coverage offered and why. Depending on the organization or reason for the request, an employee may be required to provide proof of outside coverage.