20 Flashcards
Primary 3 beneficiary 3 predecessors insured
If insured dies 3
Proceeds go 2 contingent beneficiary
No beneficiaries alive at time of insured death
No beneficiary named
Estate
Receives proceeds and benefit may be included in taxable estate
Can be changed only with written consent Of beneficiary
Irrevocable beneficiaries
Forty year old buys whole life policy
Names wife as only beneficiary
Wife dies
He dies never remarried two grown kids
Proceeds?
Insureds estate
May change designation without consent or knowledge of beneficiary
Revocable
May not change designation without written consent of beneficiary
Irrevocable
If insured and primary beneficiary die approximately same time no clear evidence who dies first
Usdl
Uniform simultaneous death law adopted most states
Distribute as if primary died first
Uniform simultaneous death law
Provides that if insured and primary die common disaster even if days differ
Presumed primary dies first so proceeds paid to contingent or insured estate
James had common disaster clause and was insured
Wife named primary beneficiary and son contingent beneficiary
Terrible accident James die immediately wife four days later
Benefit paid to
Son Ben as if Maggie died before James
Policy stipulates when premiums are due
How often paid
To whom
Mode
Manner of frequency owner pays premium
If select other than annual additional charge with more frequent billing
Premium mode
Payment mode incurs lowest overall payment
Annual
Only mode with no service fee
Annual
Period after premium that owner has to pay before policy lapses
Grace
