In-Life 6
Life income-Refund
* Pays beneficiary an income for life * Guarantees payments will at least equal the death benefit * Pays someone else balance of death benefit if the beneficiary doesn't live long enough.
joint and survivor option
A settlement option which guarantees that benefits will be payed on a life-long basis to two or more people. This option may include a period certain and the amount payable is based on the ages of the beneficiaries.
Automatic premium loan
Allows the insurer to borrow from the cash value to pay unpaid premium after grace period expires. It makes sure that the policy does not lapse
Life income-Period certain
Annuity is payable for life, or for a specified period of time, whichever is longer. If the annuitant lives beyond the stated period, benefits continue for life of the annuitant. If the annuitant dies prior to the end of the period, certain a beneficiary receives the balance of the payments for the remaining time period.
CARPPO dividend options
Cash Accumulation at Interest Reduced Premium Paid Up Additions Paid Up Insurance One-Year Term Insurance
Settlement Options
Choices available to the insured/owner for distribution of insurance proceeds.
Access to Cash Values
Get cash w/o surrendering your policy
Fixed Period
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? Contigent beneficiary
what are settlement options what happens if no option is picked
Living and death options we pick, Divides options, non-forfeiture options
Dividen (mutual or fraternal)
The portion of corporate profits paid out to stockholders. Non taxable not return on profit but on premium.
Fixed Amount
When the policyowner specifies a dollar amount in which installments are to be paid, he/she has chosen which settlement option? Contigent Beneficiary
Life income
Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? High payout but No Designated proceeds stop at death
whats the diff between these two forfeiture options REduced paid-up and Extended term insurance.
in reduced paid up you use the cash value and pay for a reduced benefit Li. for Extended you select a paid up term insurance for the original death benefit
are withdrawals or partial surrenders allowed on universal life policies
no
what are the advantages of a policy loan
no credit check interest reate is much lower than typical can pay back loan to any repayment schedule not legally binding to pay back the loan, interest do charge when loan + interest reach cash value the policy lapes some have a policy premium loan provision
Non Forfeiture Options
options available only to policy owner and only if there is cash value in the policy - Surrender for Cash - The amount of value that exceeds premium payment is taxable -can trade it in for a full paid insurance at a lower amount
Refund Annuity Option
the person will receive and annuity and any money left if the person dies will be given to the designated
