Which of the following provisions guarantees that premiums will be waived if a juvenile life policy owner becomes disabled?

A payor benefit provision is a provision under which premiums are waived in the event the policyholder becomes disabled or dies.

What determines a life insurance premium?

Medical History. Along with your age, your health is the biggest factor that determines your premiums. Healthier people are at less risk of dying while the policy is active, so they're generally approved for lower life insurance rates.

Which provision requires proof of insurability after a policy has lapsed?

Life insurance policies typically have a reinstatement provision that details the policy's requirements that must be met for reinstatement. For example, yours might state if your policy has lapsed for more than 60 days, you'll need to provide evidence of insurability to be considered for reinstatement.

What type of insurance offers permanent life coverage with premiums that are payable for life?

Whole life insurance, also known as traditional life insurance, provides permanent death benefit coverage for the life of the insured. In addition to paying a death benefit, whole life insurance also contains a savings component in which cash value may accumulate.

What kind of policy may include a waiver of premium provision?

A waiver of premium is a type of life insurance policy rider that allows you to waive premium payments should you have a qualifying disability. While some companies offer a waiver of premium for free as a clause in a life insurance policy, others consider it an add-on that may increase your premiums.

Which provision requires proof of insurability after a policy has lapsed?

Reinstatement — The restoration of a lapsed policy to full force and effect. The company requires evidence of insurability and payment of past due premiums plus interest.

What is the waiver of premium benefit?

What is Waiver of Premium? This is an additional insurance for the premium itself and usually means that the policy will be paid for by the insurance company if you are off sick and unable to work, typically for a period of more than 6 months.

What happens when a policy is lapsed?

A policy lapse occurs when the benefits and coverage provided under an insurance policy are terminated for a policy holder. A policy is 'lapsed' when the policy holder misses the premium payments and the cash surrender value (in case of permanent life insurance) is exhausted.

What required provision protects against unintentional lapse of the policy?

Automatic Premium Loan Provision This provision provides that at the end of the grace period, if the premium due has not been paid, a policy loan will automatically be made from the policy's cash value to pay the premium. This helps to prevent an unintentional lapse in the policy.

What is grace period provision?

The grace period provision allots a specifically designated amount of time in which the policyowner has to make the required premium payments after the stipulated due date. If the policyowner fails to make the premium payments, the insurance company will not immediately cancel the policy.

What is reinstatement provision?

A reinstatement provision is a clause in some life insurance policies that allows the insured to reinstate a lapsed policy provided they meet certain parameters and execute the provision within the specified time frame. Reinstatement provisions most often come into play after a policy has lapsed because of nonpayment.

What type of insurance offers permanent live coverage with premiums that are payable for life?

Permanent life, often called whole life insurance or cash value life insurance, provides coverage for the insured person's lifetime as long as premium payments are in good standing.

What type of life insurance is permanent?

Permanent life insurance is an umbrella term for life insurance policies that do not expire. The two primary types of permanent life insurance are whole life and universal life, and most permanent life insurance combines a death benefit with a savings portion.

What is another name for permanent life insurance?

Permanent life, often called whole life insurance or cash value life insurance, provides coverage for the insured person's lifetime as long as premium payments are in good standing.

Which type of life insurance is best for covering permanent needs?

Permanent life, often called whole life insurance or cash value life insurance, provides coverage for the insured person's lifetime as long as premium payments are in good standing. Unlike term life, these policies may build cash value, which a policyholder or their heirs can access under certain conditions.

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