Unit 5 LHA Exam

Other Types of Insured Riders

Spouse, Children, Familty, Exchange of Insured

Insured Term Rider

-Added to a permanent policy -Premium lower than if bought as separate policy -Rider is for limited time

Long Term Care Rider

-Advance of the death benefits while insured is living -Stated percentage of face amount value -May pay for (home care, assisted living, nursing home care)-Reduces the death benefit payable upon death

Accelerated Benefits Rider

-Advances part of the death benefit while insured is still alive (death expected in 24 months, permanent confinement in a nursting home) -reduces death benefit payable to beneficiary upon death of the insured -Disclosure by company of affect on death benefits and other benefits (medicaid)

Guarenteed Insurability Rider

-Allows additional insurance up to amount of the rider to be added (Certain ages, life events, no medical questions, cost of additional insurance based on current age)

Accidental Death or Dismemberment Rider

-Amount of the rider is the principal sum(100%), paid in addition to ace amount of death due to accident, death within 90 days - Also pays a living benefit if dismemberment occurs (severance of feet, arms, legs, or hands, loss of sight or hearing, paralysis) -Dismemberment benefit is called the capital sum - sum of principal sum (50%) -If multiple dismemberment claims while insured alive, principal sum is max paid for all claims combined

Accidental Death Rider

-Death due to accident -Death must occur within 90 days of accident -Doubles or triples the face amount

Waiver of Cost of Insurance

-Deductions from the cash account are waived -Has a waiting period

Return of premium rider

-Increasing term insurance rider -Amount of rider equal to all premiums paid -Death must occur while rider is in force

Disability Income Rider

-Pays insured a monthly income while disabled -X dollars per month per $1,000 face amount

Payor Rider

-Pays the premium of a juvenile if the adult premium payor dies or is disabled -May require the adult to provide evidence of insurabilty

Waiver of Premium

-Written if the insured and owner are the same person -Waives future premium payments as long as the insured is disabled -Has a waiting period(insured pays premium during this time even through disabled) -Company will pay future premiums after waiting period -Will reimburse insured for premiums paid during waiting period -Once no longer disabled, insured pays future premiums

Riders Affecting Amount of Death Benefit

Insured Term Rider, Return of Premium Rider, Accidental Death Rider, Accidental Death or Dismemberment Rider, Guaranteed Insurability Rider

Disability Riders Types

Waiver of Premium, Waiver of Cost of Insurance (universal), Disability Income Rider, Payor Rider