Insurance Rider
what is the waiting period on a waiver of premium rider in life insurance policies
6 months
what best describes fixed period settlement option
both the principal and interest will be liquidated over a selected period of time
an insured receives an annual life insurance dividend check, what term best describes this arrangement
cash option
if no contingent beneficiary is designated, and the beneficiary dies within a specified period of time, after the insured dies, the death benefit will be paid to the estate of the insured
common disaster
the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident
common disaster clause
items stipulated in the contract that the insurer will not provide coverage for are found in the
exclusions clause
policy owner specifies a dollar amount in which installments are to be paid, which settlement option have they chosen
fixed amount
cash surrender nonforfeiture option
funds exceeding the premium paid are taxable as ordinary income
the automatic premium load provision is activated at the end of the
grace period
this rider is available to all insured with no additional premium is not true
guaranteed insurability rider
joint and survivor settlement option guarantees
income for 2 or more recipients until they die
what type of insurance would be used for a return of premium rider
increasing term
the policy owner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that principal will be paid to their children when they reach a certain age. what settlement option should the policyowner choose
interest only option
payor benefit only pays if the owner
is disabled for at least 6 months
the premium does not change on the inclusion of additional children
it is based on an average number of children
when a reduced paid up nonforfeiture option is chosen, what happens to the face amount of the policy
it is reduced to the amount of what the cash value would buy as a single premium
another term for the cash payment settlement option
lump sum
the dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the
one year term option
a rider attached to a life insurance policy that provides coverage on the insured's family members is called
other insured rider
applying the policy dividends to increase the death benefit from quarterly dividends in a participating company
paid up additions
a rider that would not cause the death benefit to increase
payor benefit rider
the premium on the children's rider in a life insurance policy
remains the same no matter how many children are added to the policy
what determines the length of time that benefits will be received under the fixed amount settlement option
size of each installment
purpose of a fixed period settlement option
to provide a guaranteed income for a certain amount of time
the paid up addition option uses the dividend
to purchase a smaller amount of the same type of insurance as the original policy
rider in a while life policy that allows the company to forgo collecting the premium if the insured is disabled
waiver of premium
accidental death rider
will pay double or triple the face amount
riders often used in business life insurance policies when the policy owner needs to change the insured under the policy
substitute insured rider
if a life insurance policy has an irrevocable beneficiary designation
the beneficiary can only be changed with written permission of the beneficiary
spouse term rider
the rider is usually level term insurance
extended term nonforfeiture option, the policy cash value is converted to
the same face amount as in the whole life policy
an insured has chosen joint and 2/3 survivor as the settlement option. what does this mean to the beneficiaries
the surviving beneficiary will continue receiving 2/3 of the benefit paid when bot beneficiaries were alive
