Which of the following features of a group term life policy enables an individual to leave the group?
Asked by: Dr. Teagan Waters | Last update: March 2, 2023Score: 4.7/5 (12 votes)
Correct. The conversion privilege allows an individual to leave the group term plan and continue his or her insurance without providing evidence of insurability.
When an employee is terminated Which statement about a group term life?
When an employee is terminated, which statement about a group term life conversion is true? The correct answer is "Policy proceeds will be paid if the employee dies during the conversion period". An individual must apply for individual coverage within 31 days after the date of group coverage termination.
Which of the following provisions is not required in a group life insurance policy?
Which provision is NOT a requirement in a group life policy? Accidental. (An AD&D provision is not required in a group life policy.) An employee of 20 years recently retired at age 59 1/2.
What kind of beneficiary may be changed by the policy owner without the consent of a beneficiary?
(An irrevocable designation may not be changed without the written consent of the beneficiary.) When 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.)
What happens to a term life insurance policy at the end of the term?
Generally, when term life insurance expires, the policy simply expires, and no action needs to be taken by the policyholder. A notice is sent by the insurance carrier that the policy is no longer in effect, the policyholder stops paying the premiums, and there is no longer any potential death benefit.
Definition of Group Term Life Insurance
What happens with term life insurance?
When you get a term life insurance policy, you are getting life insurance that will cover you for a specific period of time. Once you have coverage, so long as you pay your premiums, you will be insured. If you die while you are insured, your beneficiaries will get the death benefit.
What happens when term life insurance matures?
Given enough time, permanent policies eventually mature. When this happens, the maturity value—which may be equal to the cash value that's accumulated or equal to the face amount—is paid out and the policy ends. Any amount that exceeds the amount invested in the contract, such as premiums paid, may be taxed as income.
Which of the following is attached to the policy to alter or add to the policy provisions?
Which of the following is attached to the policy to alter or add to the policy provisions? Endorsement - An endorsment is written amendment to the policy that also broadens or restricts the policy provisions and takes precedence over the original policy language.
Can the beneficiary of a life insurance policy be changed?
A revocable beneficiary can be changed at any time. Once named, an irrevocable beneficiary cannot be changed without his or her consent. You can name as many beneficiaries as you want, subject to procedures set in the policy. The beneficiary to whom the proceeds go first is called the primary beneficiary.
Which type of life insurance beneficiary requires his or her consent when a change of beneficiary is attempted by the policy owner?
Which type of life insurance beneficiary requires his/her consent when a change of beneficiary is attempted by the policyowner? A primary beneficiary has died before the insured in a life insurance policy. A contingent beneficiary is also named in the policy.
Which of the following groups may not be insured by a group life insurance policy quizlet?
Which of the following groups may NOT be insured by a group life insurance policy? Individuals who are related by blood. A group life insurance policy may NOT insure groups consisting exclusively of persons who are related by marriage, blood or legal adoption.
When an employee terminates coverage under a group insurance policy coverage continues in force?
The amount of your coverage is typically equal to one or two times your annual salary. Group term coverage remains in force until your employment is terminated or until the specific term of coverage ends. You may have the option of converting your group coverage to an individual policy if you leave your employer.
What provisions are required in a group life policy?
The group life policy shall contain a provision that the insurer will issue to the policyholder for delivery to each person insured a certificate setting forth a statement in summary form of the essential features of the insurance coverage of such employee or member, to whom benefits thereunder are payable, and the ...
When an employee is terminated How long does this employee have to convert group life coverage to an individual plan?
The conversion period is 31 days after termination from group coverage. This means the individual must apply for individual coverage within 31 days after the date of group coverage termination.
Can you opt out of group term life insurance?
If you have group term life insurance through your employer, it typically ends when you leave your job. But you may be able to convert it to an individual policy.
Which of the following is not a requirement for a terminated employee that has exercised the conversion privilege?
Which of the following is NOT a requirement for a terminated employee that has exercised the conversion privilege? Provide Proof of insurability. A terminating employee who wants to exercise the conversion privilege must meet all of these requirements EXCEPT supply evidence of insurability.
How do you remove someone from your life insurance?
Aside from the policyholder, only a court can remove a beneficiary from a life insurance policy. A court may only do this under limited circumstances that depend on the terms of the life insurance policy and any applicable state or federal laws.
How do I remove a beneficiary from a life insurance policy?
You can change the beneficiaries of your life insurance by contacting your insurance company. You'll need to submit a change of beneficiary form online, on paper, or over the phone. The form will ask for personal information about your beneficiary, such as: Contact information.
When can a beneficiary change occur?
Such last-minute beneficiary changes happen when the insured is gravely ill, in the hospital or nursing home, or of diminished mental capacity. Most of the time they occur a day or two before the insured's death.
Which of the following is the basic source of information used by the company in the risk?
Estate liquidation. Which of the following would be the basic source of information used by the company in the risk selection process? A"Probability of illness" and the "probability of death."
What are the four parts of a policy contract?
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The Exclusions
- Excluded perils or causes of loss.
- Excluded losses.
- Excluded property.
When should I drop term life insurance?
It's time to cancel your term life policy if you took it out for debt elimination when you either no longer have that debt outstanding, or you're leaving enough cash for your survivors to be able to pay off your debts.
What happens after 10 year term life insurance?
After 10 years, the policy expires. That means you will no longer have coverage. The death benefit coverage of the policy also only lasts until the end of the term. For example, if the insured dies within the 10-year term, their designated beneficiary will get a lump-sum payment as stated in the policy.