Life Policy Riders And Provisions And Options And Exclusions

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Payor Benefits

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The payor benefit Rider is primarily used with juveniles policies( any life insurance written on the life of a minor );otherwise ,it functions like the waiver of premium Rider. If the payor ( usually the parent or Guardian) becomes disabled for at least 6 months or dies the insurer will waive the premiums until the minor reaches a certain age such as 21. This rider is also used when owner and the insured are two different individuals.

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Policy rider

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Riders are written modification attached to the policy that provides benefits found in the original policy and sometimes require an additional 10 a.m. today also help create a policy to the specific needs of the insured and can be classified according according to their primary purpose

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Exclusions

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Exclusions are the type of risk the policy will not cover. certain exclusions are standard for the policies, While others are attached to the policy as an exclusion Rider. the most common exclusions life insurance policy are Aviation, Hazardous occupations and War and Military service.

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Incontestability

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The incontestability Clause prevents an insurer from denying a claim due to statements and application after the policy has been in force for two years, even if there has been a material misstatement of fact or concealment of a material fact. During the first two years of the policy, uninsured Macon test the claim if the insurance bills that inaccurate or misleading information was provided in the application. The incontestability period Does not apply in the event of non-payment of premiums; it also does not usually apply to statements relating to age, sex or identity.

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Level or flexible

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Lost life insurance policies have a level premium, which means that the premium Remains the Same throughout the duration of the contract. However, policies such as universal life insurance policies, allow the policyowner to pay more or less than the planned premium, referred to as flexible premium.

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Premium payment modes

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The policy Stipulates when the premiums are due, how often they are to be paid ( monthly, quarterly, semi-annual and annually ) and to whom

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Revocable Beneficiary

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The policyowner, without the consent or knowledge of the beneficiary, may change a revocable designation at any time.

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Irrevocable

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An irrevocable designation may not be changed without the written consent of the beneficiary.

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Reinstatement

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The reinstatement Provisions allow a life policy to be put back in force. The maximum time limit for reinstatement is usually three years after the policy has lapsed. If the policy owner elect to reinstate the policy, he or she will have to provide evidence of insurability. ( Usually 3 years paying back premium and providing insurability)

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Waiver of premium

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The waiver of premium Rider waives the premium for the policy if the insured becomes totally disabled. Coverage remains in force until the insured is able to return to work. If the answer is never able to work, the premiums will continue to be waived by the insurance company. Most insurers impose a six-month waiting period from the time of disability until the first premium is waived. If the insured is still disabled after this waiting period, the insurer will refund the premium paid by the insured from the start of the disability. This rider usually expires when the insured reaches age 65.

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Waiver of monthly deductions

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The waiver of monthly deductions rider pays all monthly deductions while the insured is disabled, after a six-month waiting period. This Rider only pays the monthly deductions, and not the whole premium necessary to accumulate cash value. The length of time this Rider will pay monthly production will vary based on the age at which the insured becomes disabled. This Rider is usually found in universal life and variable universal life policies.

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Children's term rider

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Allows children of insured ( natural adopted and stepchildren ) to be added to coverage for limited period of time for a specified amount. this coverage is also term insurance and usually expires when the minor reaches age 18 or 21 and will not require Evidence of insurability when converting into a Permanent policy

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Guaranteed insurability

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The guaranteed insurability rider allows the insured to purchase additional coverage at specified future dates ( usually every 3 years ) or events ( such as marriage or birth of a child ) without evidence of insurability , for an additional premium. When this option is exercised , the insured purchase the additional coverage at his or her attained age. This rider usually expires at the insureds age 40.

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Living Needs Rider

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Provide for the payment of part of the policy death benefits if the insured is diagnosed with a terminal illness that will result in a death within 2 years. The purpose of this rider is to provide the insurance with the necessary funds to take care of the medical and nursing home expenses incur as a result of the terminal illness. Many companies don't charge for this rider since it is simply an advance payment of the death benefit. The remainder is payable to the beneficiary at the time of the insured death.

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Long Term Care (LTC)

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Long-term care coverage which is often purchase as a separate policy, can also be marketed as a rider to a life insurance policy. these riders provide for the payment of part of the death benefits ( accelerated benefit ) in order to take care of the insured health care expenses which are incurred in a nursing or convalescent home.LTC benefits will reduce the amount payable to the beneficiary upon the insured death