Which type of life insurance is normally associated with a payor benefit rider?

Which type of life insurance policy pays the face amount at the end of the specified period?

A type of life insurance policy which provides for the payment of the face amount at the end of the specified period if the insured is still alive is an endowment policy.) 13.

Which policy feature makes a universal life policy?

The policy feature that makes universal life different from whole life insurance policies is its flexible premium schedule. A Modified Endowment Contract (MEC) can be described as a life insurance contract that has accumulated cash values higher than the IRS allows.

Which type of life insurance offers flexible premiums a flexible death benefit and the choice of how cash value will be invested?

Universal life insurance policies offer flexible premiums that may allow you to adjust how much you’ll pay each year by accessing some of the policy’s cash value (though you will need to pay the minimum premium amount or the policy will lapse).

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What is the automatic continuation of insurance coverage referred to as?

What is the automatic continuance of insurance coverage referred to as? renewal. All of these statements concerning whole life insurance are false EXCEPT. When a whole life policy is surrendered, income taxes may be owed. Variable life insurance and Universal life insurance are very similar.

What is face amount in life insurance?

2. The face value of life insurance is the dollar amount equated to the worth of your policy. It can also be referred to as the death benefit or the face amount of life insurance. In all cases, life insurance face value is the amount of money given to the beneficiary when the policy expires.

What type of life insurance gives the greatest amount?

The amount of the whole life insurance premium remains the same for the rest of your life. Term insurance is initially cheaper than other types of policies that offer the same amount of protection. Therefore, it gives you the greatest immediate coverage per dollar.

What is a universal life policy in insurance?

Updated: November 2019. Universal life insurance is a type of permanent life insurance. With a universal life policy, the insured person is covered for the duration of their life as long as they pay premiums and fulfill any other requirements of their policy to maintain coverage.

In what part of an insurance policy are policy benefits found?

Policy benefits can be found in the policy brochure or the policy wordings. The policy brochure will have all the benefits listed in short and the policy wordings will 13 answers · 0 votes: A broad description of the benefits is found in the section that is generically called the (7)

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What is a variable life insurance policy?

A variable life insurance policy is a contract between you and an insurance company. It is intended to meet certain insurance needs, investment goals, and tax planning objectives. It is a policy that pays a specified amount to your family or others (your beneficiaries) upon your death.

Which type of insurance has flexible premium payments?

What is a 7702 plan? Permanent life policies that have a cash value component, such as flexible premium adjustable policies, are often referred to as 7702 life insurance.

What type of insurance offers permanent life coverage with premiums that are payable for life?

Whole life insurance is the most common type of permanent life insurance, according to the Insurance Information Institute (III). Typically, a whole life policy’s premiums and death benefit stay fixed for the duration of the policy. Whole life policies have a guaranteed rate of return, according to Life Happens.

What is a MEC policy?

A modified endowment contract (MEC) is a cash value life insurance policy that gets stripped of many tax benefits. The seven-pay test determines if the policy qualifies as an MEC. MECs ended a popular way to shelter money from taxes by borrowing from insurance policies whose cash value grew too quickly.