Which benefit is normally payable to a life insurance policyowner when the insured life expectancy has been severely limited?

Which benefit is normally payable to a life insurance policyowner when the insured life expectancy?

An Accelerated Death Benefit (ADB) allows a life insurance policy owner to receive a portion of their death benefit from their insurance company in advance of their death. In most cases, the policyholder must be terminally ill, usually with a life expectancy of two years or less.

What is the term for how frequently a policyowner is required to pay the policy premium?

D. Grace period *The grace period is the period of time after the premium due date that the policyowner has to pay the premium before the policy lapses (usually 30 or 31 days). The purpose of the grace period provision is to protect the policyholder against an unintentional lapse of the policy.

Which type of life insurance policy allows a policyowner the choice of investments along with flexible?

Universal life insurance is a type of permanent life insurance that allows you to build cash value, withdraw funds, and may have basic investment options. What is unique about this type of insurance is that it offers flexible premiums, giving the policy owner some ability to vary premium payments as income changes.

Which type of life insurance policy allows a policyowner the choice of investments along with flexible premium payments?

Policy can alternate between forms of term and whole life insurance-Adjustable life insurance allows the policyowner to adjust the policy's face amount, premium, and type of protection without having to complete a new application or exchange policies.

What are the benefits of life insurance?

What limits the amount that a policyowner may borrow?

What limits the amount that a policyowner may borrow from a whole life insurance policy? Cash value - The amount available to the policyowner for a loan is the policy's cash value. If there are any outstanding loans, that amount will be reduced by the amount of the unpaid loans and interest.

What Nonforfeiture option allows the policyowner to receive the policy's cash value?

What nonforfeiture option allows the policyowner to receive the policy's cash value? The cash surrender value allows the policyowner to receive the policy's cash value.

What is a Nonforfeiture benefit?

Nonforfeiture: A Nonforfeiture Benefit must be offered with Long Term Care Insurance policies. The nonforfeiture benefit is designed to ensure that if you lapse your policy (i.e., stop paying premiums) after a specified number of years, you retain some benefits from the policy.

When a policyowner cash surrenders a universal life insurance policy?

When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be considered a red flag for an Anti-Money Laundering violation.

How are policyowner dividends treated in regards to income tax?

How are policyowner dividends treated in regards to income tax? If the dividends exceed the total premium payments for the insurance policy, the excess dividends are considered taxable income.

Which benefit supplement added to a life insurance policy?

Riders are the extra benefits that a policyholder can buy to add on to a life insurance policy. The most common include guaranteed insurability, accidental death, waiver of premium, family income benefit, accelerated death benefit, child term, long-term care, and return of premium riders.

Who normally pays the premiums for a group credit life insurance?

Group term life is typically provided in the form of yearly renewable term insurance. When group term insurance is provided through your employer, the employer usually pays for most (and in some cases all) of the premiums. The amount of your coverage is typically equal to one or two times your annual salary.

What types of life insurance are normally used for key employee indemnification?

The types of life insurance generally used to cover key employee indemnification are term, whole, and universal life insurance. Universal life is subject to a contract interest rate or a current annual interest rate.

Which of the following would help prevent a universal life policy from lapsing?

Which of the following would help prevent a universal life policy from lapsing? The policy contains sufficient cash value to cover the cost of insurance. All other factors being equal, what would the premium be like in a survivorship life policy as compared to the premium in a joint life policy?

Which of these types of life insurance allows the policyowner to have level premiums and to also?

Which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options? A life insurance policy that has a level premium but allows the policyowner to choose from a selection of investment options is known as Variable Life.

What kind of special needs would a policyowner require with an adjustable life insurance policy?

What kind of special need would a policyowner require with an Adjustable Life insurance policy? As financial needs and objectives change, the policyowner can make adjustments to the premium and/or face amount. does not guarantee a return on investment accounts.

Which life insurance policy allows the policyowner to choose where they want their funds invested?

Variable life insurance policies permit policyowner's to choose where they want premiums invested.

What is the term for how frequently a policyowner is required to pay the policy premium quizlet?

Terms in this set (29) What is the term for how frequently a policyowner is required to pay the policy premium? Mode. According to the entire contract provision, what document must be made part of the insurance policy? Copy of the original application.

What can a policyowner change a revocable beneficiary?

With a revocable beneficiary designation, the policyowner may change the beneficiary at any time without notifying or getting permission from the beneficiary. ... A policyowner may change a beneficiary at any time. However, consent may be needed by the current beneficiary if designated as irrevocable.

What are the benefits of term plan?