Chapter 9 Flashcards
Non forfeiture options
Surrender the policy for cash
But a reduced amount of paid up permanent insurance
Buy the same amount of extended term insurance
If the insurer allows purchase an annuity
Policy loan provision
No credit questions asked
Policy owner may borrow upto 90-100-% of cash value
Insurer can delay lending for 6 months
Fixed or variable interest rate charged
Unpaid interest added to Loan balance
No repayment schedule or requirement
Indebtedness repaid when policy surrendered or matures claim
May include automatic premium loan
Guaranteed purchase option
Allows purchase of specified additional amounts of insurance at specified times and ages
No need to show evidence of insurability
No new suicide exclusion or incontestable period
Options not cumulative
