Wow Flashcards
Pays some multiple of face amount if death is result of accident
Accidental death rider
Must occur within how manydays of accident in accidental death rider
90
Benefit is normally 2 times face amount
Double indemnity
Hazardous hobbies health problem disability self inflected war not covered
Accidental death rider
Pays principal face amount for accidental death and percentage of amount for accidental dismemberment
Accidental death and dismemberment rider
Limited to half the face value and payable in event of loss of one hand arm leg eye
Capital amount
Allows insured to purchase additional coverage at specified future dates without evidence of insurability for additional premium
Guaranteed insurability
Expires at insureds age 40
Guaranteed insurability
Alans policy contains both guaranteed insurability and waiver of premium rider
Three years later Alan totally permanently disabled
Ins waived and at specified times Alan may purchase
Additional amount of ins with premiums on those increases also waived
Type of insurance used for return of premium rider
Increasing term
Provides that at death prior to given age not only is original face amount payable but amount equal to all premiums paid is payable to beneficiary
Return expires at spec age such as
60
Allow for addditional temp ins to be provided without new policy
Attached to whole life policy to provide greater protection at reduced cost
Term riders
Terminal illness
Medical condition requiring intervention like transplant
Condition that limits insureds life
Inability to perform activities
Instiutionalization or confinement
Approved conditions by department of ins
Early payment benefits allowed in these conditions
Typically a percentage of the face amount of insurance usually 50%
Maximum benefit
Legal for insurer to pay up to what of death benefits before the insured dies
100%
Provides for payment of part of policy death benefit if the insured is diagnosed with term illness that will result in death within two years
Living needs rider
Purpose of this rider is to provide funds for nursing and medical expenses result of term illness. No charge for this rider since advance payment of death benefit. Payable at time of death
Living needs rider
Early payment of part of death benefit to insured from insurer for qualifying medical expenses
Accelerated benefit
Often purchased as separate policy/marketed as rider to ins policy
Long term care coverage
Payable death benefit=
Face amount -amount withdrawn-earnings lost by insurer in interest
100000 face amount
Due to term illness insured had to withdraw 30000 three years before death
Since amount was withdrawn company lost 300 interest
100000-30—-300
69700
Addresses inflation by automatically increasing amount without evidence of insurability
Cost of living rider
Face value may be increased by cost of living factor tied to an inflation index such as a
Consumer price index
Triggered by policy surrender or lapse
Nonforfeiture options
