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37 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Entire Contract |
The company may not refer to or include any other documents |
PARXO Policy Application Riders Xecutive Officer |
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Insuring Clause |
Policy stating if the client dies, the company promises to pay beneficiary the death benefit |
3 P's Parties Perils Promises |
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Consideration Clause |
Completed App + Premium |
C=A+P |
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Automatic Premium Loan |
Procedure to prevent unintentional lapses, where the insurer will take a loan from the cash value to pay the premium due |
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Reinstatement |
Allows a previously terminated policy to resume active coverage with all the benefits of their original plan |
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Incontestable Clause |
Places a limit on when the company can dispute a policy |
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Assignment |
Transferring a policy to someone else insured with you |
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Assignor |
Person giving up ownership rights |
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Assignee |
Person receiving the rights from the policy owner |
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Per Stirpes |
Benefits goes to the beneficiaries relatives |
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Per Capita |
Benefits go to named beneficiaries |
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Primary Beneficiary |
First in line to receive the policy proceeds |
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Contingent Beneficiary |
Second in line to receive the policy proceeds |
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Tertiary Beneficiary |
Third in line to receive the policy proceeds |
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Non-forfeiture Options |
Policy owners can use this to still receive cash value in the policy when they can't pay |
CER Cash Surrender Extended Term Insurance Reduced Paid-Up Insurance |
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Cash Surrender |
Cash-in a policy for the existing amount |
If Insurance is $20,000, but you built $3,000 of interest. You're paid $23,000 and have to claim the $3,000 |
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Extended Term Insurance |
Buying the same amount of term insurance as the original whole life policy |
Non-forfeiture Option |
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Reduced Paid-Up Insurance |
When the policy pays for itself |
Non-forfeiture Option |
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Stock Companies |
Non-participating group owned by stockholders |
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Mutual Companies |
Participating group owned by policyholders |
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Dividends |
Cash payments from a company's earnings |
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Dividend Options |
Ways to receive cash payments from companies |
CRAPO Cash Reduce Future Premium Accumulate at Interest Paid-Up Additions One-year Term Insurance |
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Cash Dividend Option |
Receive a check annually |
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Reduce Future Premium Option |
Dividend may be applied to the next premium payment |
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Accumulate at Interest Option |
Funds can be let in a separate account to generate interest |
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Paid-up Additions Option |
Dividends are used to buy more of the same insurance |
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One-year Term Option |
Dividend is used to purchase a 1 year term policy |
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Annuitant |
The one receiving the income |
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Waiver of Premium Rider |
If the insured is totally disabled for 6 months, they don't have to pay during the time they're out of work, and they're paid back the first 6 months of premium |
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Disability Income Benefit Rider |
Same as waiver of premium, but insured is also provided a stipulated monthly income |
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Payor Provision/Rider |
If the policyowner dies, the child (under 14.5 yrs old) won't have to pay premiums until they reach a specified age |
Juvenile policy |
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Accidental Death Benefit Rider |
Pays a multiple of the face amount of the policy if death occurs within 90 days of the accident |
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Accelerated Death Benefit |
Provides access to the life insurance benefit while the insured is still alive, but has less than 12 months to live |
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Life Insurance Policy Loans & Withdrawal Options |
Loan can be assessed interest at 7.4% advance (accrue) or 8% in arrears |
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Uniform Simultaneous Death Act |
Primary beneficiary is assumed to have died first if the insured and contingent die simultaneously & there's no evidence as to who died first |
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Life Income with Period Certain |
If the annuitant outlives the "period certain", the beneficiary is paid duration of the period certain |
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Life Income with Refund Option |
Only option that guarantees 100% of the death benefit to the beneficiary |
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