Chapters 5-6 Life Options & Riders Flashcards
options that are defined as return of premium
Dividend Options
dividend option that returns the premium as a check each year
Cash
dividend option that applies to the premium
Reduction of Premium
dividend option that accumulates over and above the cash value and death benefit held in a separate account
Accumulate at Interest
dividend option where the company sells a whole life policy in addition to the underlying policy to build up death benefit
Paid-Up Additions
instead of buying a permanent paid up policy a person could use their dividend to purchase term protection for one year
One Year Term Option
option that allows the insured to use the dividend and apply it to the back end of their premium
Paid-Up Life
taking the cash value as a check minus any outstanding loans
Cash (Non-Forfeiture)
using the cash value to purchase a new, reduced but paid up policy with no health questions
Reduced Paid-Up (Non-Forfeiture)
take the cash value and purchase an amount of term insurance equal to the original policy death benefit for as long as the cash value will pay for
Extended Term (Non-Forfeiture)
within 3 years after all past premiums plus interest are paid and proof of insurability provided a policy may be ___________
Reinstated
settlement when one lump sum is paid
Cash Settlement
when the beneficiary has the company keep the principal amount and pay only the interest
Interest Settlement
benefits that can be used while the insured is alive
Living Benefit Options
selling the insurance policy to an outside investor
Viatical Settlements
allows the insured to collect part of the death benefit prior to death
Accelerated Death Benefit
doubles the death benefit if the insured dies in an accident
Double Indemnity Rider
allows the insured to purchase additional amounts of insurance at predetermined times without proving insurability
Guaranteed Insurability Rider
rider intended to keep pace with inflation and cost of final expenses
Cost of Living Rider
term insurance sold as a rider to a permanent policy
Term Rider
the insurance company voluntarily waives it right to collect the insured’s premiums due to the insured’s disability
Wavier of Premium Rider
disability benefit offered as a rider
Disability Income Rider
waiver of premium on the payor if they become disabled or die; typically juvenile policy
Payor Benefit Rider
allows the insured to collect all or part of the death benefit prior to death (non-taxable) as a result of Confinement to Nursing home, terminal condition, dread disease, any other reason approved by Commissioner or Director
Accelerated Death Benefit Rider
maintain the policy by making the premium payment out of the cash value and applying the deduction as a loan with interest
Automatic Premium Loan Rider
