Which of the following best represents what the phrase “life insurance creates an immediate estate” means? The face value of the policy is payable to the beneficiary upon the death of the insured.

Which of the following best represents what is meant by life insurance creates an immediate estate?

What does the statement “Life insurance creates an immediate estate” mean? ” The total death benefit is paid whenever the insured dies “. Life insurance creates an immediate estate by paying a death benefit whenever the insured dies.

Which product creates an immediate estate quizlet?

Terms in this set (10) ” Life insurance creates an immediate estate”. This phrase means: when the insure dies, a death benefit is paid. Which of following pieces of information is NOT gathered during the personal financial planning process?

Which policy is characterized by a guaranteed minimum death benefit?

Universal Life insurance is a permanent life insurance plan that has built-in options and features like payment flexibility, adjustable death benefit, lapse protection and a guaranteed minimum rate.

Which of the following terms best describes the applicant’s statements on an insurance application?

Which of the following terms best describes the applicant’s statements on an insurance application? The applicant’s statements on the application are representations, not warranties. All of the following are part of the consideration element of an insurance contract, EXCEPT: Insurance contracts are unilateral.

How does life insurance creates an immediate estate?

(Life insurance guarantees to the beneficiary a specified sum of money in the event of the insured’s death.) An immediate estate can be created because the face amount may be available to the beneficiary after the first premium is paid.)

What life insurance immediately creates an estate upon the death of an insured?

Estate plan creation. Life insurance has a unique ability to create an immediate estate for your beneficiaries when you die, often for pennies on the dollar. It allows money to be passed directly to the designated beneficiary, essentially bypassing the complications created by probate.

What does the statement life insurance creates an immediate estate mean quizlet?

What does the phrase “life insurance creates an immediate estate” mean? A) The total death benefit will be paid to a beneficiary on the death of the insured. In which of the following qualified pension plans are benefits linked to the employee’s years of service and/or amount of compensation?

How does life insurance create an immediate estate quizlet?

What would be an expense factor in an insurance program? (An immediate estate can be created because the face amount may be available to the beneficiary after the first premium is paid.) (As the premium payment frequency increases, the total amount of premium paid for an insurance policy increases.)

What is the purpose for having an accelerated death benefit on a life insurance policy quizlet?

What is the purpose for having an accelerated death benefit on a life insurance policy? An accelerated death benefit allows for cash advances to be paid against the death benefit if the insured becomes terminally ill.

What is guaranteed death benefit in life insurance?

A guaranteed death benefit is a safety net if an annuitant dies while the contract is in the accumulation phase. This ensures that the annuitant’s estate or beneficiary will at least receive a specified minimum amount, even though the contract had not yet reached the point where it would start paying benefits.

Which type of life insurance policy generates immediate cash value?

Permanent life insurance is the most likely option to provide a cash value component. Types of permanent life insurances include: Whole life insurance. Universal life insurance (and subtypes including indexed and variable)

What is a straight life policy?

A straight life annuity, sometimes called a straight life policy, is a retirement income product that pays a benefit until death but forgoes any further beneficiary payments or a death benefit. Like all annuities, a straight life annuity provides a guaranteed income stream until the death of the annuity owner.

What is a participating life insurance policy quizlet?

What is a participating life insurance policy? Contract that allows the policyowner to receive a share of surplus in the form of policy dividends.

What is a life plan insurance?

Life insurance is a contract between you and an insurance company. Essentially, in exchange for your premium payments, the insurance company will pay a lump sum known as a death benefit to your beneficiaries after your death. Your beneficiaries can use the money for whatever purpose they choose.

Which of the following best describes the function of insurance?

Which of the following best describes the function of insurance? The function of insurance is to safeguard against financial loss by having the losses of few paid by the contributions of many who are exposed to the same risk.