Insurance #3

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The ownership provision entitles the policy to do all of the following EXCEPT

Answer - Set premium rates. ( The insurer sets premium rates based upon underwriting considerations.) - Receive policy loan - Assign the policy - Designate a beneficiary

The insured under a $100,000 life insurance policy with a triple indemnity rider for accidental death was killed in a car accident. It was determined that the accident was his fault. The triple indemnity rider in the policy specifies that the death must not be contributed to by the insured in any manner. In this case, what will the policy beneficiary receive?

$100,000

What is the waiting period on a Waiver of Premium rider in life insurance policies?

6 months - most insurers impose a 6 month waiting period form the time of disability until the first premium is waived.

According to the Entire Contract provision, a policy must contain

A copy of the original application for insurance.

To meet the requirement of the entire contract policy provision, an insurance policy must contain what?

A copy of the original insurance application.

Is the beneficiary required to have insurable interest in the insured?

No. Beneficiaries do not have insurable interest in the insured.

What are policy dividends?

Return of unused premiums.

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 both beneficiaries were alive.

The paid-up addition option uses the dividend

To purchase a smaller amount of the same type of insurance as the original policy.

True statement about a policy assignment

It transfers rights of ownership from the owner to another person. The policyowner may assign a part of the policy (collateral assignment) or the entire policy (absolute assignment).

What are the dividend options in life insurance policies?

Cash, reduced premium, accumulation at interest, paid-up additions, paid up option, one year term,and acceleration of endowment.

What type of assignment is used to secure the payment of a debt with an existing life insurance policy?

Collateral assignment

What life insurance policy provision states that both the policy and a copy of the application form the contract between the policyowner and the insurer?

Entire contract

What nonforfeiture option is automatically selected by the company if not chosen by the policyowner?

Extended term

Which nonforfeiture option has the highest amount of insurance protection?

Extended term (has the same face amount as the original policy, but for a shorter period of time.)

What provision allows the policyowner to reactivate a lapsed life insurance policy within a specified period of time with proof of insurability?

Reinstatement

An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for the policy's cash value, which is currently $20,000. What would be the face amount of the new term policy?

$50,000 . The face of the term policy would be the same as the face amount provided under the whole life policy

The validity of coverage under a life insurance policy may not be contested, except for nonpayment of premium, after the policy has been in force for at least how many years?

2 years (the incontestability clause prevents an insurer from denying a claim due to statements in the application after the policy has been in force for 2 years, even if there has been a material misstatement of facts or concealment of a material fact.)

Which of the following statements is TRUE concerning their Accidental Death Rider? A. It is only available in group insurance B. It will pay double or triple the face amount C. It is also known as a triple indemnity rider D. This rider is only available to insureds over the age 65.

B. It will pay double or triple the face amount The Accidental Death Rider pays 2 or 3 times the face amount if death is the result of an accident as defined in the policy and occurs within 90 days of such an accident.

The accelerated benefits provision will provide for an early payment of the death benefit when the insured

Becomes terminally ill The accelerated benefits provisions allow the owner to be advanced a significant portion of the death benefit when the insured is terminally ill.

Which of the following best describe fixed-period settlement option?

Both the principal and interest will be liquidated over a selected period of time. Under the fixed-period option (also called period certain), a specified period of years is selected, and equal installments are paid to the recipient. Both the principal and interest are liquidated together over the selected period of time.)

Under what nonforfeiture option does the company pay the policy's surrender value and have no further obligations to the policyowner?

Cash surrender

An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife dies 15 days later. The company pays the death benefit to the estate of the insured. This indicates that the life insurance policy had what provision?

Common Disaster Under the Uniform Simultaneous Death Law, Common Disaster provision, the law will assume that the primary beneficiary dies first in a common disaster as long as the beneficiary dies within this specified period of time following the death of the insured (usually 30 days). This provides that the proceeds will be paid to either the contingent beneficiary or the insured's estate, if no contingent beneficiary is designated.

What type of beneficiary is next in line after the primary beneficiary?

Contingent beneficiary

When the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option?

Fixed amount settlement (when the fixed amount settlement option is chosen, the policy owner sets the amount of each installment. The insurer will determine how long the installments are to be paid.)

What provision in a life insurance policy extends coverage beyond the premium due date?

Grace period.

An insured purchased a life insurance policy on his life naming his wife as primary beneficiary, and his daughter as contingent beneficiary. Under what circumstances could the daughter collect the death benefit?

If the primary beneficiary predeceases the insured.

What life insurance policy provision prevents an insurer from disputing or denying a claim due to misstatements on the application after certain period of time?

Incontestability

The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the A. Insuring clause B. Misstatement of Age clause C. Incontestability clause D. Reinstatement clause

Incontestability clause If an insurer wishes to contest any statements on an application, they must do so within the first two years. The incontestability clause prevents an insurer from denying a claim due to statements in an application after the policy has been in force for 2 years, even on the basis of a material misstatement of facts or concealment of a material fact.

Which of the following is true about the mandatory free look in a Life Insurance policy?

It commences when the policy is delivered ( The free look provision is a mandatory provision that allows the insured to examine a policy, and if dissatisfied for any reason, return the policy for a full refund of any premiums paid.)

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

What is the other name for the cash payment settlement option?

Lump sum; Upon death of the insured, the contract is designed to pay the proceeds in cash, called lump sum.

If a settlement option is not chosen by the policy owner or the beneficiary, what option will be used by the insurer?

Lump-sum payment

What settlement options are available in life insurance policies?

Lump-sum/cash, fixed period, fixed amount, life income, interest only

A rider attached to a life insurance policy that provides coverage on the insured's family members is called the

Other-insured rider (the other-insured rider is useful in providing insurance for more than one family member. The type of insurance offered by this rider is usually term insurance, with the right to convert to permanent insurance.

An insured purchased a life policy in 2010 and died in 2017. The insurance company discovers at that time that the insured had concealed information during the application process. What can they do? A. Pay decreased death benefit. B. Sue for the right to not pay the death benefit. C. Pay the death benefit. D. Refuse to pay the death benefit because of the fraud.

Pay the death benefit. The incontestability clause prevents an insurer from denying a claim due to statements in an application after the policy has been in force for 2 years, even on the basis of a material misstatement of facts or concealment of a material fact.

What is the advantage of reinstating a life policy as opposed to applying for a new one?

Policy premium in a reinstated policy will be set according to the insured's original age.

Who can request changes in premium payments, face value, loans, and policy plans? A. Contingent beneficiary B.Beneficiary C. Producer D. Policyowner

Policyowner Mandatory provisions give these rights to the policyowner.

When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to

Purchase a single premium policy for a reduced face amount When a whole life policy lapses or is surrendered prior to maturity, the cash value can be used by the insurer as a single premium to purchase a completely paid up permanent policy that has a reduced face amount from that of the former policy.

What nonforfeiture option provides coverage for the longest period of time?

Reduced paid-up

An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof of insurability is provided. Which policy provision allows this?

Reinstatement provision A lapsed policy may be reinstated within 3 years by paying back premiums, with interest, and proving insurability.

If a policy has an automatic premium loan provision, what happens if the insured dies before the loan is paid back? A. The policy beneficiary receives the full death benefit. B. The policy beneficiary takes over the loan payments. C. The policy is rendered null and void. D. The balance of the loan will be taken out of the death benefit.

The balance of the loan will be taken out of the death benefit. If the loan and interest re not repaid and the insured dies, then it will be subtracted from the death benefit.

When a life insurance policy was issued, the policyowner designated a primary and a contingent beneficiary. Several years later, both the insured and the primary beneficiary died in the same car accident, and it was impossible to determine who died first. Which of the following would receive the death benefit? A. The insurance company B. The insured's estate C. The primary beneficiary's estate D. The insured's contingent beneficiary

The insured's contingent beneficiary. Under the Uniform Simultaneous Death Law, the law will assume that the beneficiary dies first in a common disaster. This provides that the proceeds will be paid to the contingent beneficiary or to the insured's estate if none is designated.

What happens to proceeds of a life insurance policy if there is no named beneficiary?

The proceeds are paid to the insured's estate

Under an extended term nonforfeiture option, the policy cash value is converted to

The same face amount as in the whole life policy Under this option the insurer uses the policy cash value to convert to term insurance for the same face amount as the former permanent policy.

What life policy rider allows the company to forgo collecting the premium if the insured becomes disabled?

Waiver of premium

An insured purchased a 15- year level term life insurance policy with face amount $100K. The policy contained an accidental death rider, offering a double indemnity benefit. The insured was severely injured in an auto accident, and after 10 weeks of hospitalization, died from the injuries. What amount would his beneficiary receive as a settlement?

$200K (The beneficiary would most likely receive twice the face value of the policy, since his fatal injuries were caused by an accident and he died within 90-day benefit limit stipulated in most policies.)

The insured had his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured's death, he chosen the life income settlement option. The amount of payments will be determined by taking into account all of

1. The beneficiary's life expectancy 2. Projected interest rates. 3. Face amount of the policy. (The insured's age at death will not be considered, but the longer the life expectancy of the recipient, the lower the payment will be.)

Which of the two types of policy assignments requires transfer of all ownership rights in the policy to a third party?

Absolute assignment.

All of the following statements concerning dividends are thru EXCEPT

Ans. Dividend amounts are guaranteed in the policy - no CANNOT BE GUARANTEED -Lower insurance company costs generate higher dividends. -They stem from favorable underwriting experience. -Favorable investment results generate higher dividends.

A policyowner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what provision?

Automatic premium loan (this provision is not required, but is commonly added to contracts with a cash value at no additional charge. This is a special type of loan that prevents the unintentional lapse of a policy due to nonpayment of the premium.

What are the three nonforfeiture options in life insurance policies?

Cash surrender, reduced paid-up, and extended term.

A business owner was trying to obtain a bank loan to fund the purchase of a new business facility, but the bank required proof of additional assets to secure the loan. The business owner then decided to use her $250K life insurance policy to secure the loan. Which provision makes this possible?

Collateral assignment (the business owner could make a collateral assignment of his or her life insurance policy to the bank.)

Which rider, when attached to a permanent life insurance policy, provides an amount of insurance on EVERY family member?

Family term rider - a single rider that provides coverage on every family member is called a "family rider".

If a beneficiary wants a guarantee that benefits paid from principal and interest would be paid for a period of 10 years before being exhausted, what settlement option should the beneficiary select?

Fixed Period (Under the fixed-period installments option (also called period certain), a specified period of years is selected, and equal installments are paid to the recipient. The payments will continue for the specified period even if the recipient dies before the end of that period.)

When policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option?

Fixed amount. When the fixed amount settlement option is chosen, the policyowner sets the amount of each installment. The insurer will determine how long the installments are to be paid.

What required provision protects against unintentional policy lapse?

Grace period.

The sole beneficiary of a life insurance policy dies before the insured. If the policyowner does not amend the beneficiary designation, what will happen to the policy's death benefit?

It will be paid to the insured's estate.

The type of settlement option which pays throughout the lifetimes of two or more beneficiaries called ...

Joint and survivor - option pays while either beneficiary is still living.

What is the name for a life insurance policy rider that provides coverage on the insured's family members?

Other-insured rider.

What explains the policy owner's right to change beneficiaries, choose options, and receive proceeds of a policy?

Owner's rights; policyowners can learn about their ownership rights by referring to the policy.

An insurer has discovered a representation on a life insurance policy application regarding the insured's age. The insured is 10 years older than he stated on the application. What will the insurer do regarding the death benefit?

Pay a reduced death benefit.

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?

Payor Benefit ( if the payor (usually a parent or guardian) becomes disabled for at least 6 months or dies, the insurer will waive the premiums until the minor reaches a certain age, such as 21.)

With the interest only settlement option, what happens to the policy's death benefit?

Policy proceeds are retained by the insurance company; only the interest is paid to the beneficiary.

Who controls changes in premium payments, face values, and loans in a life insurance policy?

Policyowner

An insured committed suicide one year after his life insurance policy was issues. The insurer will ...

Refund the premiums paid; if the insured commits suicide within 2 yrs following the policy effective date, the insurer's liability is limited to a refund of premium.

What type of beneficiary can be changed at any point by the policyowner?

Revocable

What happens to a policy's cash value under an extended term nonforfeiture option?

The cash value is converted to the same face amount as in the whole life policy.

A 40-year old man buys a whole life policy and names his wife as his only beneficiary. His wife dies 10 years later. He never remarries and dies at age 61, leaving 2 grown-up children. Assuming he never changed the beneficiary, the policy proceeds will go to

The insured's estate. Because there is no viable beneficiary at the time of death, proceeds are paid to the insured's estate.

A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?

The insured's premiums will be waived until she is 21. If the payor (usually a parent or guardian) becomes disabled for at least 6 months or dies, the insurer will waive the premiums until the minor reaches a certain age, such as 21.

What does the term double indemnity mean?

The insurer will pay a benefit of twice the face amount.

Which nonforfeiture option provides coverage for the longest period of time?

The reduced paid-up nonforfeiture option would provide protection until the insured reaches 100, but the face amount is reduced to what the cash would buy.

Which is true about a spouse term rider?

The rider is usually level term insurance. The spouse term rider allows a spouse to be added for coverage. It is available for a limited amount of time, typically expiring at age 65. A spouse term rider (just like any other insured rider) is usually level term insurance.

What is the purpose of a free-look period?

To allow the insured to return the policy with a full refund

What is the purpose of settlement options in life insurance policies?

To determine how the death benefit will be paid to the beneficiary

What is the purpose of the Automatic Premium Loan provision?

To prevent the unintentional lapse of a policy because of nonpayment of the premium

The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called

Waiver of premium. Waiver of premium rider waives the premium if the insured owner has been totally disabled for a predetermined period. The payor benefit provides for an owner other than the insured and the waiver of cost of insurance is found in Universal Life.

What are the most common exclusions in life insurance policies?

War and military service, hazardous occupation, and aviation.

When can an insurance company use suicide as a defense against paying a death claim?

When a suicide is committed within a specified period of time after the policy is purchased (usually 2 years)

When will a contingent beneficiary receive death benefits from life insurance policy?

When the primary beneficiary dies before the insured.

Which of the following premium payment modes will incur the lowest overall payment?

annual (annual premiums are the only modes of payment that do not result in service fee, so the overall payment will be lower.)

Consideration

something of value exchanged for something else of value; something of value that each party gives to the other (binding force in any contract)

Assignment

transfer of rights of policy ownership (przeniesienie własności; przepisanie.)

The two types of assignments are

Absolute and collateral: absolute assigns the entire policy, collateral assigns a part or all of the benefits

The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policyowner choose? A. Fixed amount option B. Interest only option C. Life income with period certain D. Joint and survivor

B. Interest only option With the interest-only option, the insurance company retains the policy proceeds and pays interest on the proceeds to the recipient (beneficiary) at regular intervals.

Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early? A. Paid up additions B. Dividend Accumulation option C. Paid up option D. Accumulation at Interest

C. Paid- up option With the paid-up option, the insurer can accumulate dividends at interest and then use them, in addition to interest and the policy's cash value, to pay the policy earlier than planned. This is different from paid-up additions, in which the dividends are used to BUY additional policies that increase the face amount of the original policy.

Under which of the following circumstances would an insurer pay accelerated benefits? A. An insured is looking for a way to put her daughter through college B. A couple wants to build a house and would like to make a larger down payment C. An insured is diagnosed with cancer and needs help paying for her medical treatment D. A couple is nearing retirement and needs a stream of income

C.An insured is diagnosed with cancer and needs help paying for her medical treatment Accelerated benefits are paid when insureds endure financial hardship due to severe illness. They may request immediate payment of some portion of the policy's death benefit, usually 50-100%, depending on the insurer. Benefits are not taxable.

A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of ownership. The policyowner should have her husband named as the A. Secondary beneficiary B. Contingent beneficiary C. Irrevocable beneficiary D. Revocable beneficiary

D. Revocable beneficiary The policyowner may change a revocable designation at any time and without the consent of the beneficiary. Irrevocable beneficiaries, on the other hand, have a vested interest in the policy, so the policyowner may not be able to exercise certain rights without their consent.

The automatic premium loan provision is activated at the end of the

Grace period (provided there is sufficient cash value in the policy, this provision triggers a loan at the end of the grace period to keep a policy in force.)

An individual is purchasing a permanent life insurance policy with a face value of $25K. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which option should be included in the policy?

Guaranteed insurability option (allows the insured to purchase specific amounts of additional insurance at specific times without proving insurability.)

If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a

Guaranteed insurability rider The guaranteed insurability rider allows the policyowner to purchase specific amounts of additional insurance at specific dates or events, without proving continued insurability. Rates for the additions are based upon attained age.

Life income joint and survivor settlement option guarantees

Income for 2 or more recipients until they die. The Life Income Joint and Survivor option guarantees an income for two or more recipients for the duration of their lives. Most contracts stipulate that the surviving partner will receive a reduced payment after the other dies, although some will continue to pay the same amount. There is no guarantee that all the life insurance proceeds will be paid out.

Which of the following is true about premium on the children's rider in a life insurance policy?

It remains the same no matter how many children are added to the policy. The premium does not change on the inclusion of additional children; it is based on an average number of children.

Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?

Life income with period certain (the life income with period certain option guarantees payments for the life of the recipient and also specifies a guaranteed period of continued payments. If the recipient should die during this period, the payments would continue to a designated beneficiary for the remainder of the period.)

What is the name of a clause that is included in a policy that limited or eliminates the death benefit if the insured dies as a result of war or while serving in the military?

Military service or war (There are 2 different types of exclusions that may be used by life insurers that limit the death benefit if the insured dies as a result of war or while serving in the military. The status clause excludes all causes of death while the insured is on active duty in the military. The results clause only excludes the death benefit if the insured is killed as a result of an act of war.)

What is the term for how frequently a policyowner is required to pay the policy premium?

Mode - the premium mode is the manner or frequency that the policyowner pays the policy premium.

What dividend option can increase the death benefit of the existing life policy?

Paid-up additions

What dividend option is automatically selected by the company if not chosen by the policyowner?

Paid-up additions

An insured has a continuous premium whole life policy. She would like to use the policy dividends to pay off her policy sooner than would have been possible otherwise. What dividend option could she use?

Paid-up option With the paid-up option, the insurer can accumulate dividends at interest and then use them, in addition to interest and the policy's cash value, to pay the policy earlier than planned. This is different from paid-up additions, in which the dividends are used to buy additional policies that increase the face amount of the original policy.

Which of the following riders would NOT cause the Death Benefit to increase?

Payor Benefit Rider Payor Benefit Rider does not increase the Death Benefit; it only pays the premium if the payor is disabled or dies. With Guaranteed Insurability Rider, the policyowner can increase DB at specified ages or events, i.e. marriage or birth of a child; Cost of Living Rider increases DB to keep pace with inflation; in Accidental Death Rider, if the insured dies from an accident, DB is a multiple of the Face Amount.

Who has the right to the cash value of a life insurance policy?

Policyowner

What beneficiary designation has first claim to the death proceeds of a life insurance policy?

Primary beneficiary

A couple owns a life insurance policy with a Children's Term rider. Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. Which of the following will she need to provide for proof of insurability?

Proof of insurability is not required. (if children's term rider is attached to a life insurance policy, children can be covered under the policy until they reach the maximum age stated in the policy. At that point, they can convert their coverage to a new policy without having to issue proof of insurability.)

When an insured under a life insurance policy died, the designated beneficiary received a face amount of the policy as well as a refund of all the premiums paid. Which rider is attached to the policy?

Return of premium; The return of premium rider pays the beneficiary not only the face amount of the policy but also the amount that had been paid in premiums. The rider stipulates that death must occur prior to a certain age in order for the premium amount to be returned. The Return of Premium Rider is funded by using increasing term insurance.

What term is used to describe methods of payment of the death benefit to the beneficiary upon the insured's death?

Settlement options.

Which of the following riders is often used in business life insurance policies when the policyowner needs to change the insured under the policy?

Substitute insured rider (the rider,, or change of insured rider, allows the policyowner to change the insured listed under the policy, subject to insurability.The rider is often used in business life insurance policies.)

The interest earned on policy dividends is

Taxable. Dividends are a return of unused premiums on which the insured has already paid taxes. Any interest earned is taxable as ordinary income.

Children's riders attached to whole life policies are usually issued as what type of insurance?

Term ( children's term riders provide term insurance with coverage expiring when the minor reaches a certain age.)

What information will be stated in the consideration clause of a life insurance policy?

The amount of premium payment (consideration clause states that the value offered by the insured is the premium and statements made in the application, so it will include the information about the amount and frequency of premium payments.)

A policyowner borrowed a portion of cash value from his whole life policy. If the loan is not repaid, how will that affect the death benefit to the beneficiary?

The amount of the loan will be subtracted from the death benefit.

If a life insurance policy has an irrevocable beneficiary designation,

The beneficiary can only be changed with written permission of the beneficiary

What is NOT true about beneficiary designations?

The beneficiary must have insurable interest in the insured. (A beneficiary is the person or interest to whom the policy proceeds will be paid upon the death of insured. Beneficiaries do not have to have an insurable interest in the policyholder.)

Upon the death of the insured, the primary beneficiary discovered that the insured chose the interest only settlement option. What does it mean?

The beneficiary will only receive payments of the interest earned on the death benefit. (With the interest only option, the insurance company retains the policy proceeds and pays interest on the proceeds to the recipient (beneficiary) at regular intervals (monthly, quarterly, semiannually, or annually).

An applicant for life insurance misstated her age on the policy application. How will this affect the death benefit?

The death benefit will be adjusted to the amount that the insured could obtain for her correct age.

If an insured withdraws a portion of the face amount in the form of accelerated benefits because of a terminal illness, how will that affect the payable death benefit from the policy?

The death benefit will be smaller. (If an insured withdraws a portion of the death benefit by the use of this rider, the benefit payable at death will be reduced by that amount, plus the amount of earnings lost by the insurance company in interest income.

With the reduction of premium dividend option, how is the dividend used?

The dividend is applied to the next year's premium (it reduces the next year's premium).

What is TRUE about cash surrender nonforfeiture option?

The insurers surrender the policy at its current cash value. Only any excess of value is taxable as income. Once the policyholder opts for cash surrender, the policy is immediately active.

In the fixed-period settlement option, how will the number of installments for the death benefit proceeds determine the amount of the installments?

The longer the period selected, the smaller each installment will be.

All of the following are true regarding the guaranteed insurability rider EXCEPT A. The insured may purchase additional insurance up to the amount specified in the base policy. B. It allows the insured to purchase additional amounts of insurance without proving insurability only at specified dates or events. C. The rider is available to all insureds with no additional premium. D. The insured may purchase additional coverage at the attained age.

The rider is available to all insureds with no additional premium. The guaranteed insurability rider may be structured to allow for specific additional amounts of insurance to be purchased at specific ages, dates and events without proving insurability; however, the coverage is purchased at the insured's attained age and the maximum allowable purchase is specified in the base policy. This rider usually expires at the insured's age 40.

activities of daily living (ADLs)

basic self-care tasks such as eating, bathing, toileting, walking, and dressing


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