Policy provisions and options Flashcards
is the entire, final, complete, and fully integrated agreement between the Parties with respect to the subject matter hereof and supersedes any prior agreements or communications between the Parties, whether written, oral, electronic or otherwise.”
Entire Contract
he insurer is required to pay a certain amount to the listed beneficiary upon the death of the policyholder.
Insuring Clause
15 days
Free Look
Zoe’s disability policy could state that she must pay $50 each month with premiums due on the 15th of each month
Consideration
the person who has control of the policy during the insured’s lifetime
Owner Rights
Individual
Beneficiary designation
beneficiaries are the people or entities you intend to receive your life insurance death benefit
beneficiaries are the backup.
Primary and contingent
beneficiaries can be changed easily,
beneficiaries cannot.
Revocable and irrevocable
wildfires, hail, floods, tornadoes and windstorms, severe thunderstorms and extremes of heat and cold
Common Disaster
the court will likely need to appoint an adult custodian to manage the funds until the child becomes an adult
Minor beneficiaries
Instead of naming each child as a beneficiary in a life insurance policy one can say “all children of the insured,”
Designation by class
the amount that a policyholder will pay either in a lump sum or regularly to purchase the insurance policy
Premium of Payment
annual, semi-annual, quarterly, or monthly
Modes
You don’t make your premium payment
Grace Period
Suppose that you forgot to make a premium payment on the scheduled date.
Automatic Premium Loan
you can adjust the coverage period, face value and premium payments.
where the amount you pay and your cover stay the same during a policy term unless any changes are made to the policy.
Level and flexible
process of putting the insurance policy back after a lapse
Reinstatement
Cash Value Withdrawal
Policy loans, withdrawals, partial surrenders
cash surrender value, extended term insurance, loan value, and paid-up insurance.
Non-forfeiture options
policies don’t pay dividends, even if the insurance company makes a profit
Dividends and dividend options
prevents the provider from voiding coverage due to a misstatement by the insured after a specific amount of time has passed.
. Incontestability
an agreement that transfers the insurance claims rights or benefits of the policy to a third party.
Assignments
will not be covered within most life insurance policies
Suicide
life insurance policy that adjusts the amount of insurance when the insured’s age
Misstatement of age and gender
life insurance policy proceeds are paid out to beneficiaries upon the insured’s death or when the policy endows.
Settlement Options
a 40-year-old named Fred, a preferred non-tobacco user with a $1 million life insurance policy. Fred contracted terminal brain cancer and decided he wanted to accelerate half the face value of his policy
Accelerated death benefits
