3. Special Coverages Pt. 1

Be able to identify each of the following special coverages and when they are appropriate: 1.

1. Mortgage redemption

Be able to identify each of the following special coverages and when they are appropriate: 2.

2. Family protection, family policy, family rider;

Be able to identify each of the following special coverages and when they are appropriate: 3.

3. Policies linked to indexes;

Be able to identify each of the following special coverages and when they are appropriate: 4.

4. Juvenile policies (including Jumping Juvenile and Payor Rider)

Be able to identify each of the following special coverages and when they are appropriate: 5.

5. Return of premium

Be able to identify each of the following special coverages and when they are appropriate: 6.

6. Joint life and survivorship policies

Family Term =

Spouse Term + Children's Term

Family policy, Children are automatically covered

after birth for a specified period of time, usually 30 or 31 days.

A mortgage redemption provision, If the borrower/insured dies, the insurer

assumes responsibility for paying the outstanding loan balance to the insured's creditor.

A mortgage redemption provision insures

borrowers for an amount equal to their mortgages.

A family protection or family policy

combines whole life with term insurance to cover family members in a single policy, providing coverage on every member of a family.

Family policy, The spouse has the opportunity to

convert his or her term coverage to permanent coverage up until age 65

Family policy, The children may

convert their term coverage to permanent coverage when they turn the age of 21, or the maximum age for coverage as a dependent that is stated in the policy, without evidence of insurability.

Family policy, To continue coverage for the newborn after the initial period, the parents must

inform the insurer of the birth within that time period.

When added to a whole life policy, the family term rider provides

level term life insurance benefits covering the spouse and all of the children in the family.

The family term rider incorporates

the spouse term rider along with the children's term rider in a single rider.

The family policy typically provides

whole life insurance on the breadwinner of the family and convertible term insurance on the other family members.