Which type of life insurance policy allows the policyowner to pay more or less?
Asked by: Prof. Veda Haley | Last update: February 11, 2022Score: 4.8/5 (1 votes)
Convertible insurance lets the policy owner convert a term policy that only covers the insured individual for a predetermined number of years into a policy that covers that individual indefinitely, as long as the policyholder continues to pay the insurance premium.
Which type of life insurance policy allows the policyowner to pay more or less that planned premium?
Adjustable life insurance is a hybrid of term life and whole life insurance that allows policyholders the option to adjust policy features, including the period of protection, face amount, premiums, and length of the premium payment period.
Which type of life insurance policy allows the policy owner to pay more or less than the planned premium quizlet?
Adjustable life policies allow for increases or decreases in the face amount or premium, so long as the premium is sufficient to pay for the mortality.
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 kind of life insurance policy covers two or more persons and pays the face amount?
A joint life insurance policy covers two people and pays out either after one policyholder dies (first-to-die) or after both policyholders die (second-to-die or survivorship).
Don’t Buy a Life Insurance Policy Until You Watch This!
What type of life policy covers 2 lives?
A survivorship life policy insures two individuals and is designed to pay a benefit upon the second death.
What kind of life insurance policy covers two or more people with death benefit payable upon the last person death?
Coverage of two or more individuals with the death benefit payable upon the last person's death is a feature of last survivor insurance.)
What is payable to the policyowner?
waive the premium payments in the event the insured becomes totally disabled. What is payable to a policyowner if a whole life policy is surrendered prior to its maturity date? The loan value. The cash value. The face amount minus any past due premiums and outstanding loans.
Which of the following life insurance policies allows a policyowner to take out a loan?
Automatic Premium Loan (APL) Provision: A permanent life insurance policy non-forfeiture provision that allows an insurer to automatically pay an overdue premium for a policyowner by making a loan against the policy's cash value as long as the cash value equals or exceeds the amount of the premium due.
Which life insurance policy allows the policyowner to have coverage equal to the net death benefit of the lapsed policy?
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.
Who is the policyowner in credit life insurance quizlet?
Benefits are paid to the borrower's beneficiary. Which of the following is TRUE about credit life insurance? Creditor is the policyowner. An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks.
Which of the following types of insurance policies is most commonly used in credit life insurance?
Credit life insurance and credit disability insurance are the most commonly offered forms of coverage. They also may go by different names. For example, a credit life insurance policy might be called "credit card payment protection insurance," "mortgage protection insurance" or "auto loan protection insurance."
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 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 of these can be altered by the policyowner in an adjustable life insurance policy?
One of the changes a policyowner can make in an adjustable life insurance policy is the amount of premium paid. ... Adjustable life allows the policy owner to adjust the policy's face amount, premium, and type/length of coverage without having to complete a new 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.
Which life insurance policy provision allows a policyowner to cancel the policy and receive a full refund?
The free look period is a required period of time, typically 10 days or more, in which a new life insurance policy owner can terminate the policy without penalties, such as surrender charges.
What is a juvenile life insurance policy?
Juvenile life insurance is permanent life insurance that insures the life of a child (generally under age 18). It is a financial planning tool that provides a tax advantaged savings vehicle with potential for a lifetime of benefits.
What test defines an MEC?
The seven-pay test helps the IRS determine whether your life insurance policy will be converted into an MEC. It compares the total premiums you paid in the first seven years of the policy with what you'd need to pay it in full. If your payments exceed what's needed, your policy becomes recognized as an MEC.
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.
What is a reduced paid up policy?
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 kind of life insurance product covers children under their parents policy?
Child life insurance covers the life of a minor and is typically purchased by a parent, guardian or grandparent. In general, these policies are whole life products — a type of permanent life insurance. This means coverage lasts for the child's entire life, as long as the premiums are paid.
Which of the following types of policies allows for a flexible premium?
Universal life insurance policies offer flexible premiums that may allow you to adjust how much you'll pay each year by accessing some of the policy's cash value (though you will need to pay the minimum premium amount or the policy will lapse).
What is modified premium life insurance?
Modified life insurance is characterized by premiums that change over time, usually five to 10 years after the policy begins. The death benefit protection stays the same, but the premiums aren't level. After premiums increase, they typically stay consistent for the rest of the policy.