|A policy loan is made possible by which provision?||Cash value provision|
|A return of premium life insurance policy is||Whole life and increasing term|
|This type of of rider appears on a juvenile life insurance policy||Payor benefit rider|
- 1 Who is insured under a juvenile life policy?
- 2 Which rider provides coverage for a child under a parents life insurance?
- 3 What is a juvenile life insurance policy quizlet?
- 4 What are riders on a life insurance policy?
- 5 What is a juvenile rider?
- 6 What is a child insurance rider?
- 7 What is a CLT rider?
- 8 What is a MEC policy?
- 9 What is Cola rider?
- 10 What is a juvenile premium provision?
- 11 What does a family life insurance policy offer?
- 12 What is the difference between a jumping juvenile and a regular juvenile life policy?
- 13 Which type of rider will waive the premium on a child’s life insurance policy if the parent paying the premium dies?
- 14 What is rider premium?
- 15 Which of the following is true about the premium on the children’s rider in a life insurance policy?
Who is insured under a juvenile life policy?
Juvenile life insurance is permanent life insurance that insures the life of a child (generally under age 18). It is a financial planning tool that provides a tax advantaged savings vehicle with potential for a lifetime of benefits.
Which rider provides coverage for a child under a parents life insurance?
A child rider is also known as a child term rider or child insurance rider. One child rider provides coverage to all of your children and any future children you have and is significantly less expensive than a child life insurance policy.
What is a juvenile life insurance policy quizlet?
Juvenile insurance is a way to provide a child with long-term extremely affordable whole life insurance protection. The whole life death benefit protection remains. Family income policies use decreasing term to fund a potential income period that decreases as the policy ages.
What are riders on a life insurance policy?
Riders are the extra benefits that a policyholder can buy to add on to a life insurance policy. The most common include guaranteed insurability, accidental death, waiver of premium, family income benefit, accelerated death benefit, child term, long-term care, and return of premium riders.
What is a juvenile rider?
Juvenile term coverage is typically available as a rider (basically, a coverage option) on a parent’s term policy. This rider typically lasts until your child reaches adulthood. You can often purchase coverage for all your children for the same price, with a single rider.
What is a child insurance rider?
A child rider is an add-on to a life insurance policy that pays out a death benefit if one (or more than one) of your children passes away. This added coverage serves as a safety net for you so you can focus on your family instead of worrying about paying funeral expenses.
What is a CLT rider?
This rider provides level term life insurance coverage on the life of an Insured Child.
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.
What is Cola rider?
What Is the COLA Rider? The COLA rider is designed to help your disability insurance benefit keep pace with inflation. These riders generally adjust your policy’s monthly benefit on an annual basis, based on a fixed percentage or tied to the consumer price index after you have been disabled for 12 months.
What is a juvenile premium provision?
1. The payor benefit provision is also known as a juvenile premium provision, and is usually found in juvenile insurance policies where the insured is the child of the policyholder, and under 18 years of age.
What does a family life insurance policy offer?
Family life insurance helps to secure your family’s financial future when the unexpected occurs. At a minimum, the death benefit can cover costly funeral expenses. Another option is whole life insurance (also called permanent insurance). Premiums are higher than term insurance, but you’re covered for your entire life.
What is the difference between a jumping juvenile and a regular juvenile life policy?
Regular juvenile allows the child to continue their policy at a higher premium at age 21. b. Jumping juvenile allows the child to purchase insurance without requiring evidence of insurability. Jumping juveniles will waive the premiums if the parent or guardian dies before child turns 21.
Which type of rider will waive the premium on a child’s life insurance policy if the parent paying the premium dies?
Payor Benefit Rider A rider may be added to the policy of a juvenile stating that if the payor (the one paying the premium) dies or becomes totally disabled prior to the juvenile’s reaching majority, the subsequent premiums due are automatically waived.
What is rider premium?
A rider is an add-on cover to the base policy that provides additional benefits. Life insurance companies offer a range of optional riders that you can buy at an additional premium to suit your needs. In case an accident leaves the policyholder permanently disabled, the rider will pay the specified sum insured.
Which of the following is true about the premium on the children’s rider in a life insurance policy?
Which of the following is true about the premium on the children’s rider in a life insurance policy? It remains the same no matter how many children are added to the policy: it is based on an average number of children. Taxable: dividends are a return of unused premiums on which the insured has already paid taxes.