What is the advantage of reinstating a policy instead of applying for a new one on Quizlet?
Asked by: Wyatt Barrows | Last update: April 29, 2025Score: 4.1/5 (18 votes)
What are the advantages of reinstating a policy instead of applying for a new one?
A reinstatement clause in a life insurance policy allows the policyholder to restore a lapsed policy to its original terms within a specified period, typically up to five years. This clause helps policyholders maintain their original coverage without purchasing a new policy after a lapse.
What is the advantage of reinstating an original life policy quizlet?
When the primary beneficiary dies before the insured. What is the advantage of reinstating a life insurance policy as opposed to applying for a new one? Policy premium in a reinstated policy will be set according to the insured's original age.
What advantage does the renewability feature give to a term policy Quizlet?
In this question, we are tasked to determine the pros of having a renewability feature to a term policy. This term refers to a feature that allows a policyholder to extend the coverage of his/her policy beyond its initial term without the necessity for a new medical inspection or providing proof of insurability.
What happens to the life insurance premiums if the father becomes disabled?
A Waiver of Premium Rider is an add-on provision to a life insurance policy that ensures if the policyholder becomes seriously ill or disabled and is unable to continue working, the insurance company will waive the premium payments, allowing the policy to remain in force without any further payment from the ...
I was wrong about Whole Life Insurance...
Can a life insurance policy be reinstated after death?
Note that your policy will still have lapsed at the end of the grace period, meaning that if you pass away before reinstating your policy, the insurer can deny coverage based on a lapsed policy.
Does life insurance pay out if you become disabled?
Life insurance and long-term disability
There are life insurance policy riders which can be included within a policy that may be able to help in certain events where you become very ill or disabled.
What advantage does the renewability give to a term policy?
Renewability enables a policyholder to keep current coverage (though likely at a much higher premium) without having to re-qualify. In general, having a renewable term on a term life insurance policy provides peace of mind for the possibility of a worst-case scenario.
Which of the following is an advantage of a renewable term policy?
A renewable term insurance policy allows you to renew your plan regularly without a requalification process. Most term policies come with an annual renewable option. You can pay the renewal premium each year and continue to enjoy the coverage.
Which of the following is an advantage of term life insurance quizlet?
One advantage of term life insurance is the initial premium is lower than for an equivalent amount of whole life insurance. Term life provides the greatest amount of death benefit per dollar of initial cash outlay.
What does it mean to reinstate an insurance policy?
Definition: If an insured person fails to pay the premium due to various circumstances and as a result the insurance policy gets terminated, then the insurance coverage can be renewed. This process of putting the insurance policy back after a lapse is known as reinstatement.
What is the purpose of reinstate?
to put someone back in a job or position previously held, or to put a law or rule back into effect: She will be reinstated to her full professorship and receive back pay and benefits. The hospital suspended Goldstein during the investigation but reinstated him when the report cleared him of any wrongdoing.
When a life insurance policy is to be reinstated all of the following apply?
When a life insurance policy is to be reinstated, all of the following apply: All back premiums must be paid. This means that the policyholder will need to pay any missed premiums that were not paid during the period the policy was lapsed. The application must be submitted within 3 years of the lapse.
What is the advantage of reinstating an original life policy brainly?
Reinstating an original life policy allows the insured to often retain the premiums that were set at a younger age, which is advantageous since premiums generally increase as one ages.
Why is reinstatement important?
Reinstatement is an important concept in employment law because it protects the rights of employees and ensures that they are treated fairly by their employers. In this section, we will explore the concept of reinstatement in more detail and discuss why it is important for both employees and employers.
Does a reinstated policy provide immediate coverage?
Reinstatements become effective immediately for accidents. In most cases, it does not become effective for illness coverage until after 10 days from the date of reinstatement. This is to avoid adverse selection (preexisting conditions). Most insurers will require the following when reinstating a lapsed policy.
What are 2 advantages of renewable?
Benefits of Renewable Energy
Generating energy that produces no greenhouse gas emissions from fossil fuels and reduces some types of air pollution. Diversifying energy supply and reducing dependence on imported fuels. Creating economic development and jobs in manufacturing, installation, and more.
What are the benefits and advantages of renewable energy?
Both benefit and advantage refer to a good thing. Benefit is a noun and a verb, advantage is a noun. The difference is that advantage is sometimes used in the for comparison with something else; being better than something else. Exercising regularly has many benefits.
What type of life insurance is best?
A whole life policy is generally considered the most secure form of insurance. Whole life policies have more rigid premium payment requirements than universal life policies. As long as scheduled premium payments are paid, the cash value is guaranteed to increase each year.
Which of the following is an advantage of annual renewable term life insurance?
Renewable term plans give you the right to renew for another period when a term ends, regardless of the state of your health. With each new term the premium is increased. The right to renew the policy without evidence of insurability is an important advantage to you.
What is the main advantage of term insurance?
Term life insurance is a simple, affordable solution for your life insurance needs. It can also be used to supplement your other insurance coverage. Coverage is available for 10- or 20-year terms, is less expensive and more flexible than whole life insurance and can easily be renewed.
When can a renewable term life insurance policy be renewed?
A renewable term life insurance policy can be renewed after the term expires. The term may be as short as one year. Typically, you can renew your policy without a repeat of a medical exam or requalification. However, the premium may go up every year or every few years as you age.
Does a life insurance policy affect social security benefits?
If you're receiving Social Security retirement benefits and you're the beneficiary of a life insurance policy, the payout would be considered unearned income; therefore, it wouldn't impact your retirement benefit at all. You would continue to receive your Social Security benefit in the same amount.
What age does disability insurance end?
Social Security Disability can stay active for as long as you're disabled. If you receive benefits until age 65, your SSDI benefits will stop, and your retirement benefits will begin. In other words, your SSDI benefits change to Social Security retirement benefits. Sometimes, SSDI benefits will stop before age 65.
Do disabled people pay more for insurance?
Car insurance companies are strictly prohibited by law from increasing premiums based solely on the policyholder's disability status. However, there are risk factors that insurers can consider that are associated with certain disabilities that could result in a higher monthly premium.