1． a. Suicide clause provides that after the policy is issued, the insured commits suicide within two years, the amount of the insured amount is not paid. Moreover, the premium is only reimbursed by the insurance company. In some cases, the insurer may insert the clause for one year instead of two years. This clause prevents individuals from committing suicide.
b. Grace allows policyholders to pay 31 days to pay overdue fees. The purpose of the grace period is to provide additional time for the insured to pay the extra premium. Some policies may even have a grace period of 61 days. In addition, the purpose of the grace period is to prevent the insurance policy expired, because a temporary shortage may occur or the insured may forget to pay …show more content…
An incontestable clause is the most insurance to prevent the supplier from covering up the insured person by mistake after a certain period of time has passed a clause.
b. The clause protects the beneficiary if the insurer attempts to compete for a death claim.
In addition, any competition by the insurer will cause economic harm and difficulty to the beneficiary, because the insured has died.
3. a. The reinstatement clause allows the owner to recover the lapsed policy. The following requirements for the recovery of a life insurance policy are as follows: Should provide evidence of insurability. All overdue premiums must be paid. The overdue premium interest must be paid from the date of payment of insurance premiums to the actual date.
b. The advantage is to recover the acquisition fee if the new policy is taken. The disadvantages of recovery are as follows: recovery requires high cash expenditures. The new policy provides greater flexibility in the payment of premium. If the policy failure is an old life policy, where there is limited flexibility in premium …show more content…
A particular beneficiary is a designated beneficiary, and a class beneficiary is the child of the insured, or other designated person.
5. a. Absolute transfer refers to the unconditional, unconditional transfer of ownership (all rights, interests and liabilities) to the other party. Description: ownership of absolute transfer of insurance policy.
b. The mortgage transfer of life insurance is a conditional transfer, which is the principal beneficiary of the death benefit as the principal of the loan. If the borrower is unable to pay, the lender can cash a life insurance policy to recover the arrears.
6. The cash value life insurance policy allows the insured to borrow the cash value of the policy. Interest rates can range from 6 to 8% in policy. Insurance companies also allow flexible interest rates in most cases. Interest rates can be paid annually, can also be added to the policy loans. If the insured dies, it will benefit from the deduction of the due policy loan and interest.
a. The cash value belongs to the insurer, the insurer undertakes a certain interest in determining the cash value, dividend premium, and surrender value. The insurer must invest in the interest bearing securities to meet the contractual obligations. Therefore, the insured is required to pay interest offset the loss of the insurer's
b. Grace allows policyholders to pay 31 days to pay overdue fees. The purpose of the grace period is to provide additional time for the insured to pay the extra premium. Some policies may even have a grace period of 61 days. In addition, the purpose of the grace period is to prevent the insurance policy expired, because a temporary shortage may occur or the insured may forget to pay …show more content…
An incontestable clause is the most insurance to prevent the supplier from covering up the insured person by mistake after a certain period of time has passed a clause.
b. The clause protects the beneficiary if the insurer attempts to compete for a death claim.
In addition, any competition by the insurer will cause economic harm and difficulty to the beneficiary, because the insured has died.
3. a. The reinstatement clause allows the owner to recover the lapsed policy. The following requirements for the recovery of a life insurance policy are as follows: Should provide evidence of insurability. All overdue premiums must be paid. The overdue premium interest must be paid from the date of payment of insurance premiums to the actual date.
b. The advantage is to recover the acquisition fee if the new policy is taken. The disadvantages of recovery are as follows: recovery requires high cash expenditures. The new policy provides greater flexibility in the payment of premium. If the policy failure is an old life policy, where there is limited flexibility in premium …show more content…
A particular beneficiary is a designated beneficiary, and a class beneficiary is the child of the insured, or other designated person.
5. a. Absolute transfer refers to the unconditional, unconditional transfer of ownership (all rights, interests and liabilities) to the other party. Description: ownership of absolute transfer of insurance policy.
b. The mortgage transfer of life insurance is a conditional transfer, which is the principal beneficiary of the death benefit as the principal of the loan. If the borrower is unable to pay, the lender can cash a life insurance policy to recover the arrears.
6. The cash value life insurance policy allows the insured to borrow the cash value of the policy. Interest rates can range from 6 to 8% in policy. Insurance companies also allow flexible interest rates in most cases. Interest rates can be paid annually, can also be added to the policy loans. If the insured dies, it will benefit from the deduction of the due policy loan and interest.
a. The cash value belongs to the insurer, the insurer undertakes a certain interest in determining the cash value, dividend premium, and surrender value. The insurer must invest in the interest bearing securities to meet the contractual obligations. Therefore, the insured is required to pay interest offset the loss of the insurer's