Which of the following is are appropriate uses for life insurance?
Life insurance policy benefits can be used to help pay for final expenses after you pass away. This may include funeral or cremation costs, medical bills not covered by health insurance, estate settlement costs and other unpaid obligations.
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When calculating how much life insurance does an income earner need?
Rule of thumb: Most financial planners recommend an amount 10-15x your current income. Life insurance rates are influenced by a number of factors, but your health has the biggest impact on the final cost.
Which type of rider will waive the premium on a child’s life insurance policy if the parent paying the premium dies?
Juvenile insurance may be sold with a payor benefit rider, which provides for waiving future premiums on the child's policy in the event of the death of the person who pays the premium.
What is the purpose for having an accelerated death benefit on a life insurance policy quizlet?
What is the purpose for having an accelerated death benefit on a life insurance policy? An accelerated death benefit allows for cash advances to be paid against the death benefit if the insured becomes terminally ill.
What are some common personal uses of life insurance?
- count on quality coverage. Get the protection you need and the peace of mind you deserve with Allstate insurance. …
- Paying final costs. …
- Paying off debt or replacing income. …
- Inheritance. …
- Paying federal or state estate taxes. …
- Charitable contributions.
Which of the following are common uses of life insurance proceeds quizlet?
Which of the following are common uses of life insurance proceeds? Provide an education for children, set up an estate plan, establish a regular income for survivors, and accumulate savings. (All of these are common uses.)
When are survivorship life insurance policies helpful?
Which of the following is a common business use for life insurance quizlet?
When an owner dies, the policy's proceeds are paid to the business. The business then uses this money to buy the deceased's ownership share from the deceased's heirs or estate. Funding key person coverage is another common business use of life insurance.
Which of these would be the best example of a limited pay life insurance policy?
A limited-pay life policy requires the policyholder to pay premiums for a limited number of years, but its coverage last a lifetime. 7-pay life insurance, life paid up to 65, and policies with pre-determined time frames are some examples of a limited-pay life policy.
How much life insurance do I need based on salary?
A common rule of thumb for determining how much life insurance you need is to multiply your salary by ten. Some experts recommend multiplying it by 5 or 7. That may be a simple way to determine how much you need, but it's not a good method.
How much life insurance should the breadwinner have?
Most experts recommend having a policy that's 5 to 10 times your annual salary. If you are the breadwinner that supports a spouse and children, use a life insurance calculator to help determine the right amount of coverage to protect your loved ones.
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When calculating the amount of life insurance needed for an income earner What has to be determined?
When calculating the amount of life insurance needed, one rule of thumb to consider is to buy between seven and 10 times your annual income. This amount of insurance coverage aims to provide your loved ones with enough money to cover their needs for the near future and plan ahead for the years to come.
Do high income earners need life insurance?
Do you need life insurance if you have a high net worth? If anyone depends on your income or if your beneficiaries will pay an estate tax on their inheritance, you can use life insurance to provide for their expenses even if you have a high income or high net worth.
Which type of rider will waive the premium on a child’s life insurance policy if the parent paying dies?
Payor Benefit Rider A rider may be added to the policy of a juvenile stating that if the payor (the one paying the premium) dies or becomes totally disabled prior to the juvenile's reaching majority, the subsequent premiums due are automatically waived.
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Which insurance rider is designed to pay premiums on a child’s policy if the parent dies?
A child rider is an add-on to a life insurance policy that pays out a death benefit if one (or more than one) of your children passes away. This added coverage serves as a safety net for you so you can focus on your family instead of worrying about paying funeral expenses.
Which type of rider will waive the premium?
Key Takeaways. A waiver of premium rider is an optional insurance policy clause that waives insurance premium payments if the policyholder becomes critically ill or physically impaired. To buy a waiver of premium rider, you may need to meet certain age and health requirements.
Which rider provides coverage for a child under a parent’s life insurance policy?
A child rider is also known as a child term rider or child insurance rider. One child rider covers all of your children and any children you have in the future. It's significantly less expensive than a child life insurance policy.
Should you make your trust the beneficiary of life insurance policies?
What is the purpose for having an accelerated death benefit?
What Is the Purpose for an Accelerated Death Benefit? Accelerated death benefits exist to help terminally ill individuals with life insurance access a portion of their death benefit before they pass away. The intent is to use the money to help cover healthcare and related costs.
What is the purpose of the accelerated death benefit rider quizlet?
The accelerated benefit rider allows the insured to access a portion of the death benefit in advance if he has been diagnosed as terminally ill and is expected to die within 24 months.
Which statement about accelerated death benefits is correct quizlet?
Which statement about accelerated death benefits is CORRECT? An accelerated death benefit payment can be requested when the insured has limited life expectancy or meets certain medical circumstances.
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Which of the following provides accelerated death benefits in a life insurance policy?
Accelerated death benefits (ADB) allow someone with a life insurance policy who is terminally ill to access a portion of the policy's death benefit while they are alive.