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3 Cards in this Set
- Front
- Back
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Extended term option |
A life insurance non forfeiture option under which the insured uses the Policy's cash value accumulation to purchase one year renewable term insurance in an amount equal to the original policy face amount. Although the policy holder could select the extended term option at anytime if the policy lapses and no other non forfeiture option has been selected. The policy with automatically go Into extended term. Remember there are three non forfeiture options, cash surrender, reduced paid up and extended term. |
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Face amount |
The amount indicated on the face of a life policy that will be paid at death or when a whole life policy matures at age 100. Also known as the death benefit or the policy limit. Not taxable. |
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Family income rider |
Added to a whole life policy for an additional premium this rider is similar to the decreasing term rider except that payment to the beneficiary are in the form of monthly income rather than a lump sum. For example if you added a 10 year $100,000 FIR to your policy and died five years later your family would receive $10,000 a year for five years PLUS the face amount of your whole life policy. Remember the rider is term insurance and you must die in the term. If you died after 11 years the rider would not cover but the whole life would since whole life is "permanent " insurance covering to age 100. |
