A: The easiest way to find out is to contact your agent or broker and ask them. If you dont have an agent or broker, you can also call the customer service. Express Apparent Implied Conditional, The type of multiple protection coverage that pays on the death of the last person is called a(n) joint life policy survivorship life policy annuity joint policy dual life policy, A nonforfeiture option can be used to increase the death benefit, All of these are valid options for an Adjustable Life Policy EXCEPT The policy's premium can be increased or decreased The policy's death benefit can be increased or decreased A nonforfeiture option can be used to increase the death benefit The policy's protection period can be modified, A life insurance contract which accumulates cash values higher than the IRS will allow, A Modified Endowment Contract (MEC) is best described as A life insurance contract which accumulates cash values higher than the IRS will allow An annuity contract which was converted from a life insurance contract A modified life contract which enjoys all the tax advantages of whole life insurance A life insurance contract where all withdrawals prior to age 65 are subject to a 10% penalty, An interest-sensitive life insurance policyowner may be able to withdraw the policy's cash value interest free. "What are accelerated benefits? The model regulations also limit some insurance companies interest costs to reimburse the insurer for early payment. The . A. An insurer's claim settlement practices are regulated by the Securities and Exchange Commission (SEC) National Association of Claims Adjusters (NACA) National Association of Insurance Commissioners (NAIC) State insurance departments, A life insurance company has transferred some of its risk to another insurer. Life income with guaranteed period because the beneficiary receives a life income with a However, there are exceptions to this rule. What kind of policy is this? The employer has been contributing $75, for the total monthly premium of $100. When agents are acting within the scope of their contract, their actions will be assumed to be the acts of the. Check with your agent or broker to determine if the company youre considering offers an accelerated death benefit rider on its policies. State Insurance Departments NAIC Insurance carriers Insurance producers, Intentional withholding of material facts that would affect an insurance policy's validity is called a(n) estoppel concealment adhesion misrepresentation, The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? Decreasing Term reduces in death benefit as the loan obligation reduces in balance. For example, if youre a citizen or resident of Canada who owns financial assets in a foreign country, you may be responsible for FATCA reporting. Which of the following statements is true? Some accelerated death benefits are paid in a lump sum in case of a terminal illness. Through viatical settlements, your life insurance policy is sold to a third party and you receive a lump sum. Study with Quizlet and memorize flashcards containing terms like Which of the following statements about the ownership of a life insurance policy is (are) true? A policy owner wants to name her husband as the beneficiary on her disability policy. months, she has not recovered and remains totally disabled. Answer these questions to make sure you understand: You can find out more about this type of insurance by reading the lesson titled Accelerated Death Benefit: Definition & Provisions. Only the insured pays the premium Only the insured can change the provisions Only the insurer is legally bound Only the insured is legally bound, A professional liability for which producers can be sued for mistakes of putting a policy into effect is called fiduciary bond errors and omissions fiduciary trust errors and oversights, In order for a contract to be valid, it must be filed with the state be signed and witnessed by an attorney be in writing contain an offer and acceptance, Which type of clause describes the following statement: "We have issued the policy in consideration of the representations in your applications and payment of the first-term premium". All other trademarks and copyrights are the property of their respective owners. Through accelerated death benefits, policyholders can pay for their daily living and medical expenses as well as look after the needs of their family once they pass. Adjustable universal life policy Flexible universal life policy Variable universal life policy Modified universal life policy, Jonas is a whole life insurance policyowner and would like to add coverage for his two children. A payment might be made in monthly portions or all at once. Were available 24/7. Which type of life insurance policy is this? She finds Other Quizlet sets. A benefit that allows beneficiaries to receive money if the user takes out cash against the policy while still living. What beneficiary classification is appropriate in this situation? Therefore, you can usually get more from a viatical settlement versus an ADB. You may select from among several accelerated benefit alternatives when you get a new life insurance policy. To receive the accelerated death benefit, the policyholder must be diagnosed with a terminal illness by a physician and have a life expectancy of 12 months or less. A: An ADB rider is an extra coverage or benefits linked to an insurance policy. Additionally, seniors with terminal illnesses may look at viatical settlements as another option. Choose one answer. A hotel for visiting a hospital in another town for someone's condition. When an annuity is written, whose life expectancy is taken into account? Contact your life insurance provider to find out the specifics of what their life expectancy requirements are when applying for accelerated death benefits. Which of the following reasons for an early distribution of funds from a qualified retirement plan would incur a 10% penalty? Tom's spouse Bob's estate Bob's spouse Tom, Which contract element is insurable interest a component of? To figure out if you qualify for accelerated death benefits, your life insurance company will require certification from your doctor pronouncing you terminally ill and stating that you have a life expectancy of between 12 to 24 months. The accelerated death benefit is a feature in most life insurance plans that allows someone to receive a portion of their death benefit early to spend while they are still alive. The biggest drawback is that a life insurance benefit may not be used to pay off debt since it reduces the amount available for your beneficiaries. The names of the Harbor Life users marketed as example transactions have been changed to protect the privacy of the user. In exchange, the overall death benefit is reduced. The provision that allows this is called Partial Surrender Subrogation Automatic Premium Loan Accelerated Death Benefit, All of these are characteristics of a universal life insurance policy EXCEPT Flexible death benefit Fixed surrender value Flexible premiums Builds cash value, Which of the following policies does NOT build cash value? The accelerated death benefit is also known as a living benefits rider, chronic illness rider, terminal illness rider, critical illness rider, and long-term care supplement. Kathy, age 29, is married and has a son, age 3. American Life Fund Accelerated Death Benefit. An accelerated death benefit lets you access a portion of your life insurance policy's death benefit while you're living. Enrolling in a course lets you earn progress by passing quizzes and exams. How Much Is My Life Insurance Policy Worth? Additional riders and benefits often can be added to a life insurance policy to provide greater They could impact your eligibility for Medicaid and SSI. This isnt intended to be a substitute for long-term care insurance. Its also referred to as a double indemnity rider because it might double the money your loved ones receive. A person sitting in the passenger seat of a car. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? The remainder of the life insurance benefits are paid out after death. His insurance agent told him the policy would be paid up if he reached age 100. number of years of payments, the remaining payments are paid to a contingent beneficiary. If you are approved for nursing homes or elder care, insurance providers may advance the payment of death benefits if you will be confined to a nursing home for six months and will remain there permanently. All else being equal, which of the following will NOT be considered unfair discrimination by insurers? Legal Consideration Competent parties Countersignature, A contract that requires certain conditions or acts by the insured individual, Which of the following BEST describes a conditional insurance contract? Eventually, they retire and dissolve the business. life insurance at specified times in the future without evidence of insurability indemnity The accelerated death benefit is not a substitute for health or long-term care insurance. 72 terms. The accelerated death benefit is a feature in most life insurance plans that allows someone to receive a portion of their death benefit early to spend while they are still alive. accelerated benefits rider. The face amount and policy premium are not affected by the payment Before payment of the benefit is made, specific conditions must exist, such as suffering from a terminal illness There may be a dollar limit on the maximum benefit The benefit can be offered as a rider at a specific extra cost or may be at no cost, Which of the following is NOT part of an insurance contract? The patient may also resist ankle dorsiflexion or flex the knee involuntarily if Homan's sign is positive. When you pass away, your life insurance company pays the amount of coverage you purchased in its entirety to your beneficiaries. The content contained in this website is not applicable for consumers in states where American Life Fund is not permitted to make life settlement transactions, solicit or advertise. Avery Logan is a content consultant for Harbor Life Settlements with expertise on a range of health and finance related subjects. Generally, death must be expected within 24 months. 2.The policyholder can designate a new owner by filing an appropriate form with the . that will enable Kathy to meet her financial goals. Death benefits Cash value Loading costs Separate account investments, Which policy feature makes a universal life policy different from a whole life policy?