Nc Life And Health Insurance Terms

Front 1

Rights of ownership

Back 1

Ownership rights include naming beneficiaries, choosing the settlement option (how the policy proceeds will be paid), the right of assignment, the right to policy cash value, if any, choice of premium payment mode, dividend option, if any, and the right of conversion if the policy is a convertible term policy.

Front 2

Third-party ownership

Back 2

In third-party ownership the three parties to the contract are the policy owner, insured and insurer. The policy owner must have an insurable interest in the life of the insured.

Front 3

Cash Payment Option

Back 3

The policy owner receives a check for the amount of the dividend.

Front 4

Reduction of Premium Payments Option

Back 4

Allows the policy owner to use the dividend to offset the cost of a future premium payment.

Front 5

Accumulation at Interest Option

Back 5

Allows the insurer to retain the dividend to be invested and grow in value.

Front 6

One-year Term Option

Back 6

Allows the policy owner to use the dividend as a single premium to purchase one-year term protection.

Front 7

Paid-up Additions Option

Back 7

Allows the policy owner to use the dividend as a single premium to purchase an additional amount of whole life coverage.

Front 8

Paid-up Insurance Option

Back 8

Allows the policy owner to use dividends to use dividends to pay up the policy earlier.

Front 9

Waiver of Premium Rider

Back 9

Allows the policy owner to waive premium payments during a disability, and keeps the policy in force. The disability must be total and permanent. After a certain age (usually 60-65), the waiver of premium rider is void.

Front 10

Waiver of Cost of Insurance

Back 10

Allows a universal life policy owner who becomes disabled to waive the cost of death protection but does not waive the cost of premium required to build cash value.

Front 11

Disability Income Benefit

Back 11

If the policy owner becomes totally and permanently disabled, the insurer will pay the insured a periodic income, and in some policies it also waives the policy premiums.

Front 12

Payor Rider

Back 12

If the individual paying the premiums on a juvenile life policy becomes disabled or dies before the insured child reaches a certain age, such as 21, the policy premiums will be waived until the child reaches the specified age.

Front 13

Accelerated Benefit Rider

Back 13

Allows the insured to receive a portion of the death benefit prior to death if the insured has a terminal illness.

Front 14

Long-term Care Rider

Back 14

A type of accelerated benefit, which is used to pay long-term care costs.

Front 15

Riders Covering Additional Insureds

Back 15

Riders can be attached to protect the insured's spouse, children, or both.

Front 16

Substitute Insured Rider

Back 16

Also referred to as the exchange privilege rider. Allows the insured under a life insurance policy to be changed.