Which Nonforfeiture option has the highest amount of insurance protection quizlet?

Which of the following Nonforfeiture options does not allow the insured to reinstate the policy?

The extended term and reduced paid up nonforfeiture options allow the policyowner to reinstate the original policy because coverage is still in effect. However, the cash surrender option does not allow the policy to be reinstated because the policy has been surrendered for its cash value, and no coverage remains.

Which of the following provisions or options protects the insured from an unintentional policy lapse?

The purpose of the grace period provision is to protect the policyholder against an unintentional lapse of the policy.

Which Nonforfeiture option is the longest amount protection?

Answer D is correct. The Cash Surrender Value is the Nonforfeiture Option that allows the owner to withdraw the cash value upon the surrender of the policy. Answer A is correct. Reduced Paid-Up provides the longest period of coverage.

What is a Nonforfeiture option in life insurance?

A non-forfeiture option. (or clause) is a provision included in certain life insurance policies stipulating that the policyholder will not forfeit the value of the policy if the policy lapses after a defined period due to missed premium payments.

What is extended term Nonforfeiture option?

Choosing the nonforfeiture extended term option allows the policy owner to use the cash value to purchase a term insurance policy with a death benefit equal to that of the original whole-life policy. The policy is calculated from the insured's attained age.

What are the three Nonforfeiture options?

These are ways the cash values can be paid out or used by the policyowners. There are three nonforfeiture options: (1) cash surrender; (2) reduced paid- up insurance; and (3) extended term insurance. If a policyowner chooses, he/she may request a cash payment of the cash values when the policy is surrendered.

What is reduced paid-up option?

Reduced paid-up insurance is a nonforfeiture option that allows the policy owner to receive a lower amount of fully paid whole life insurance, excluding commissions and expenses. 1 The attained age of the insured will determine the face value of the new policy.

What is a Nonforfeiture value?

Nonforfeiture Values — in whole life insurance policies, benefits that accrue to the insured when the policy lapses from nonpayment of premium. These benefits are usually either an amount of paid-up term life insurance or a cash surrender value.

What is pure death protection?

Pure death protection. provided under pure life insurance. If the insurer dids during the term, the policy pays the death benefit to the beneficiary. If the policy is canceled or expires prior to the insured's death, nothing is payable at the end of the term. There is no cash value or other living benefits.

Which of the following settlement options in life insurance is known as straight life?

Which of the following settlement options in life insurance is known as straight life? Correct! The life-income option, also known as straight life, provides the recipient with an income that he or she cannot outlive.

What is the default Nonforfeiture option quizlet?

Nonforfeiture Option - use the cash value to purchase a Term Life policy with the same face value as the canceled Whole Life policy and extend coverage for as long as the money will take it. This is the automatic default nonforfeiture option.

What is the Nonforfeiture value of an annuity?

The nonforfeiture amount is the deferred annuity's accumulated value minus certain charges (such as prior withdrawals and loans), based on interest rate minimums regulated by statute.

When the insured selects the extended term Nonforfeiture?

If you chose the extended term nonforfeiture, then your accumulated cash value would purchase an extended term insurance policy with a term of 30 years and death benefit equal to the original insurance plan.

What are 5 dividend options?

Which of the following provisions or options protects the insured from an unintentional policy lapse due to nonpayment of premium?

What protects the insured from an unintentional policy lapse due to a nonpayment of premium? Automatic premium loan. Automatic premium loan provision is not required, but is commonly added to contracts with a cash value at no additional charge.

Which of the following protects the insured from an unintentional policy lapse due to a nonpayment of premium quizlet?

Which of the following protects the insured from an unintentional policy lapse due to a nonpayment of premium? ... Nonforfeiture option where cash value is used to make a single premium payment to purchase as much of the same type of insurance as possible.

What provision in an insurance policy extends coverage beyond?

What provision in an insurance policy extends coverage beyond the premium due date? Grace period - Grace period is a mandatory provision found in all life and health insurance policies that provides coverage for a period of time after the premium becomes past due.

What are dividend options?

Dividend Options — varying ways in which insureds may elect to receive dividends under a life insurance policy. Dividends may be received in the form of cash payments, as increases to the policy's cash value, or as paid-up additional insurance.

Which of these Nonforfeiture options continue to build up cash value?

Which of these Nonforfeiture Options continue a build-up of cash value? A Reduced Paid-Up option would provide continuing cash value build-up. The correct answer is "Decreasing term rider". A decreasing term rider can add additional coverage to a whole life policy.

What does Nonforfeiture Rpu mean?

Reduced Paid-Up Insurance is a non-forfeiture option available only on whole life policies, which gives the policyowner the right to a fully paid-up policy for some reduced amount guaranteed death benefit when they are ready to stop paying premiums.