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 Mathematics with Business Applications6th EditionMcGraw-Hill Education 3,760 solutions Business Math17th EditionMary Hansen 3,598 solutions Mathematics with Business Applications6th EditionMcGraw-Hill Education 3,760 solutions
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Terms in this set (46)3 or 6 months The appropriate rider allows premium payments to be waived in the event of disability. What is the normal waiting period for premiums to be waived? There is usually a waiting period of 3 or 6 months once the policy owner becomes disabled before the first premium will be waived. Annuity rider Which life insurance rider affecting the policy's death benefit protects against the chance of depleting income during prolonged life? An annuity rider can be added onto a life insurance policy. Annuities protect against the chance of depleting income for prolonged life. Return of premium Which life insurance rider pays an amount equal to the total premiums paid as long as the insured dies during a certain time period, as stated in the policy? The return of premium rider pays the total amount of premiums paid into the policy as long as the insured dies within a certain time period specified in the policy. The death benefit is comprised of the face amount plus the total premiums paid into the policy. It waives the insured's premiums if the insured is totally disabled before a specified age. Which of the following explanations best describes the purpose of the waiver of premium provision of a life insurance policy? The waiver of premium provision waives premium payments during a disability, and keeps the policy in force. The disability must be total and permanent. After a certain age (usually 60 or 65), the waiver of premium provision is no longer valid.
Long-term care rider Some riders can affect the death benefit of a life insurance policy. Which of the following riders can decrease the death benefit? The long-term care rider can reduce the death benefit if the decrease is incorporated into the life insurance policy. The juvenile can assume ownership of the policy.
When a juvenile covered by a payor rider reaches the specified age, what happens to the ownership of the policy? When a child covered on a payor rider reaches the specified age, he/she can assume ownership of the policy. The juvenile can assume ownership of the policy. The Guaranteed Insurability Rider, or GIR, allows the insured to buy? The Guaranteed Insurability Rider (GIR) permits the insured to buy additional amounts of life insurance coverage at specific points in time in the future, as specified in the policy, without proof of insurability. Younger siblings of the policyholder Riders covering additional insureds can be added to life policies. A popular rider is the children's term rider. All of the following can be covered by the children's term rider, EXCEPT: The children's term rider does not apply to younger siblings of the policyholder. Only children of the policyholder can be covered under the children's term rider. If the insured is totally and permanently disabled Under what conditions will the waiver of premium rider pay benefits? The waiver of premium rider stipulates that the insured must be totally and permanently disabled in order to pay benefits. Payor Of the following life insurance policy riders, which does not alter the amount of the death benefit? The payor rider only waives premiums if the person paying premiums becomes disabled or dies before the insured child reaches age 21, at which point premium payments resume. The return of premium rider pays the total amount of premiums paid into the policy as long as the insured dies within a certain time period specified in the policy. Which of the following best describes the return of premium rider The return of premium rider pays the total amount of premiums paid into the policy as long as the insured dies within a certain time period specified in the policy. Rider What is the term for a policy element that adds or takes away coverage? A rider is attached to a policy and either adds or takes away from coverage. The face amount of the policy Jon's life insurance policy contains a disability income benefit that will pay him a periodic income in the event he becomes disabled. What factor determines the amount of the benefit? The period income is based on the policy's face amount. Neither the frequency of payment nor the cause of disability is pertinent to the amount of the benefit. The face amount of the policy Jon's life insurance policy contains a disability income benefit that will pay him a periodic income in the event he becomes disabled. What factor determines the amount of the benefit? The period income is based on the policy's face amount. Neither the frequency of payment nor the cause of disability is pertinent to the amount of the benefit. The amount paid is one half of the face amount of the life insurance policy. All of the following statements are true about the accidental death benefit (ADB), EXCEPT: The accidental death benefit is a multiple of the policy benefit, usually double or triple. 3 to 6 months How long is the waiting period for the waiver of premium rider in life insurance policies? In most life insurance policies with the waiver of premium rider, the insured must be disabled for 3 to 6 months before the premium will be waived. Accelerated benefit rider Which life insurance rider is also referred to as the living benefit rider and allows the insured to receive a portion of the death benefit prior to death if the insured has a terminal illness? The accelerated benefit rider, also referred to as a living benefit rider, allows the insured to receive a portion of the death benefit prior to death if the insured has a terminal illness. 80% A long-term care rider provides qualifying individuals with funds to pay long-term expenses while the insured is still alive. What is the typical maximum percentage of the death benefit that can be paid by this rider? A long-term care rider can pay up to 80% of the death benefit. a. The insured can buy additional life insurance at specific times in the future. Which of the following statements is true about the guaranteed insurability rider (GIR)? All of the statements are true. The options offer the opportunity to buy additional life insurance at specific times, and if not exercised within 90 days of the specified time, the insured loses the option. The rider usually drops off at age 40. a. Riders meet unique needs of policyholders. There are many different riders that can be added to a life insurance policy. Which of the following statements pertain to riders? Riders are used to meet unique needs of individual policyholders and are considered an endorsement to a policy. Depending on the rider, benefits can be added to or taken away from a policy.
Substitute insurance rider Sometimes an insurance rider is needed for a non-family member such as a key employee in an organization. Which of the following riders would be used in this circumstance? The substitute insurance rider allows the policy to remain in force when an employee changes jobs or retires and a new employee is substituted on the policy. Universal life
What type of life insurance policy is the waiver of cost of insurance rider used for? The waiver of cost of insurance rider is used for universal life policies. It allows a disabled policyowner to waive the cost of death protection, but does not waive the cost of premium required to build cash value in the policy. Payor rider Which disability income rider is typically attached to a juvenile life insurance policy? The payor rider waives premiums if the premium-payor of a juvenile life policy becomes disabled before the child reaches a certain age. The benefit expires when the insured reaches a certain age, usually 65. The definition of what constitutes accidental death is defined in each policy. The accidental death benefit usually excludes deaths from accidents that occur while committing a crime, non-commercial aviation, and acts of war. How long does the accidental death benefit remain part of the policy? The date that the accidental death benefit expires is stated in the policy, and is usually 65. Return of premium Which of the following riders pays back the premiums paid into a life insurance policy as long as the insured dies within the time as specified in the policy? Return of cash value allows a whole life policy's cash value to be included in the death benefit. The automatic premium loan allows the insured to automatically use cash value to pay an overdue premium. The excess interest provision pertains to a policy's interest rate and the ability of the policy to build excess cash value. Return of premium pays back premiums paid into the policy. Waiver of premium rider Which life insurance rider allows the policyowner to waive premium payments during a disability, while keeping the policy in force? The waiver of premium rider in a life insurance policy permits the policyowner to waive premium payments during a disability, while keeping the policy in force. Typically, the policy requires that the disability is total and permanent. There is no deduction from the death benefit. Accelerated benefits fall into the same category as death benefits. Which of the following is NOT true about the accelerated death benefit? If accelerated benefits are paid, there is a deduction of that amount paid from the death benefit. The policy pays because the accident was not war related. Jack is a fighter pilot in the Air Force and flies F16 jets. There are exclusions in his life insurance policy for death or injury related to war. What happens to the accidental death and dismemberment benefits of his life insurance policy if he loses his vision in both eyes in a car accident while home on leave? The accidental death and dismemberment rider pays for loss of limbs, and also covers loss of vision in both eyes. Temporary waiver of the policy premium Which of the following best describes the benefit provided by a payor benefit rider? A payor benefit rider provides a temporary waiver of the policy premium if the premium payor dies, until the minor insured reaches the age stated in the policy (usually 18 or 21). Family term rider Which life insurance rider covers the insured's spouse and three children in one rider ? The family term rider combines the spouse and children's term rider in one rider. The policy face value will be lowered based on the accelerated amount paid. If an insured opts to use the accelerated death benefit on their life insurance policy, what is the net effect on the face value of the policy? The face value is lowered/adjusted based on the amount paid for the accelerated death benefit. $200,000 Abe has a $200,000 whole life insurance policy with double indemnity from an AD&D rider. If Abe dies from cancer, how much will his beneficiary receive? Abe's death was not caused by an accident, so his beneficiary will only receive the policy's face amount. Variable income rider Of the following, which is not a term rider? Term riders include: spouse, other insured, children, family, return of premium and return of cash value. There is not a variable income rider. The insured in not required to provide proof of insurability when the option is exercised. Jill and Jessie are debating whether to add certain riders to their life insurance policy. What is the main benefit of the guaranteed insurability rider (GIR) on a policy? The guaranteed insurability rider (GIR) on a policy allows the insured to increase the amount of life insurance at specific times in the future without providing proof of insurability. The policy amount is not related to the GIR. The original policy specified how much additional coverage could be purchased. The options must be exercised within 90 days of the event. Accelerated benefit A long-term care rider is a type of: The long-term care rider is a type of accelerated benefit, which is used to pay long-term care costs. The long-term care rider may be separate from the life policy, in which case the accelerated benefit does not reduce the death benefit, or may be incorporated into the life insurance policy, thereby reducing the death benefit or policy cash value. All waived premiums must be repaid if the policyowner recovers from the disability. All of the following statements are true regarding the waiver of premium rider for a life insurance policy, EXCEPT: The policyowner is not required to pay back the waived premiums if they recover from the disability. Guaranteed insurability rider Which rider allows the policyowner to purchase additional amounts of whole life insurance at certain points in the future? The guaranteed insurability rider, or future increase option, allows the policyowner to purchase additional amounts of whole life coverage at certain future dates (i.e., marriage, birth of a child). a. The insured must have a terminal illness to receive the benefit. The accelerated benefit rider is also called a living benefit rider. Which of the following is
true about the accelerated benefit rider? In order for the accelerated benefit rider to pay benefits, the insured must have a terminal illness. Sometimes nursing home confinement also suffices for payments to be made. Because the payments are used to pay medical expenses, the benefit is not taxable. Waiver of cost of insurance Which of the following is not a life insurance rider that affects the policy's death benefit? Life insurance policy riders that affect the death benefit amount include: multiple indemnity (accidental death benefit), accidental death and dismemberment, guaranteed insurability, cost of living, return of premium, return of cash value, term and annuity. Payor rider Jacqueline has purchased life insurance policies for her sons, ages 10 and 14. Which of the following riders can she purchase to waive the premiums on her son's policies if she were to become disabled? The payor rider would waive policy premiums until her sons reach a specified age. Endorsement Another term that means rider is: Endorsement is synonymous with rider. Age, health The
face amount of the substitute insured rider remains the same for a new employee. The premium however, will be refigured. ______ and ________ are both required in order for the premium to be refigured for the new employee. Exchange privilege rider Which rider allows the named insured to be changed in a life insurance policy? The exchange privilege rider (substitute insured rider) allows a named insured to be changed. $100,000 Julie has been disabled for three years. The insurance company has waived $4,000 worth of premiums on her $100,000 life insurance policy. If Julie dies, how much will her beneficiary receive? Julie's beneficiary will receive the full face amount. The waiver of premium does not affect the face amount. Return of cash value Which life insurance rider pays the policy's cash value? The return of cash value rider allows a whole life policy's cash value to be included in the death benefit. A principal sum if the insured loses both arms The principal sum of a AD&D rider attached to a life insurance policy pays: The accidental death and dismemberment (AD&D) rider pays a principal sum if the insured loses any of the following due to an accident: both hands, both arms, both legs, or vision in both eyes. Sets with similar termsChapter 4: Policy Provisions, Options and Riders (…83 terms julianntruonggPLUS Life Provisions20 terms Rhonda_Cartes Life Insurance Policy Provisions, Options, and Rid…65 terms dtungpa1 Life/Health A.D. Banker - Chapter 358 terms Sloan_Edgeton9 Sets found in the same folderPolicy Provisions, Options and Riders40 terms yanikem 5/1 Quiz60 terms NoahTheUnifier 5/6 Quiz: Riders45 terms NoahTheUnifier Chapter 4 Mod 5 Quiz: Variable Products30 terms NoahTheUnifier Other sets by this creatorOnline Chapter 8 Quiz20 terms gloria_exiga Online Chapter 7 quiz18 terms gloria_exiga 1st online 50 Question Exam64 terms gloria_exiga Exam online Ch 623 terms gloria_exiga Verified questions
QUESTION Describe the different ways in which capital can be transferred from suppliers of capital to those who are demanding capital. Verified answer
QUESTION Identify and briefly compare the two leading stock exchanges in the United States today. Verified answer
QUESTION Midwest Water Works estimates that its WACC is 10.5%. The company is considering the following capital budgeting projects: $$ \begin{matrix} \text{Project } & \text{Size} & \text{Rate of Return}\\ \text{A} & \text{\$ 1 million} & \text{12.0\\%}\\ \text{B} & \text{2 million} & \text{11.5}\\ \text{C} & \text{2 million} & \text{11.2}\\ \text{D} & \text{2 million} & \text{11.0}\\ \text{E} & \text{1 million} & \text{10.7}\\ \text{F} & \text{1 million} & \text{10.3}\\ \text{G} & \text{1 million} & \text{10.2}\\ \end{matrix} $$ Assume that each of these projects is just as risky as the firm’s existing assets and that the firm may accept all the projects or only some of them. Which set of projects should be accepted? Explain. Verified answer
QUESTION If you bought a share of common stock, you would probably expect to receive dividends plus an eventual capital gain. Would the distribution between the dividend yield and the capital gains yield be influenced by the firm’s decision to pay more dividends rather than to retain and reinvest more of its earnings? Explain. Verified answer Recommended textbook solutionsMathematics with Business Applications6th EditionMcGraw-Hill Education 3,760 solutions Business Math17th EditionMary Hansen 3,598 solutions Business Math17th EditionMary Hansen 3,598 solutions Fundamentals of Financial Management, Concise Edition10th EditionEugene F. Brigham, Joel Houston 777 solutions Other Quizlet setscombination policies18 terms sarahhancock22 MO State insurance exam200 terms Hedgpeth96 Chapter 2 life insurance policies (incomplete)12 terms spencer_valentine6 Parte 3 LIFE INSURANCE class224 terms proyecto004PLUS Related questionsQUESTION Under the ACA, adult children (up to age 26 years) can remain/join their parent's plan even if they: 2 answers QUESTION Most people think of risk management as . . . 9 answers
QUESTION 18. An apartment building sells for $600,000 and has a gross rent multiplier of 6.0. how much annual rent does the building produce? 6 answers QUESTION Explain how a primary insurer may completely eliminate the liabilities it has assumed under the policies it has issued. 5 answers What is the purpose of the accelerated death benefit rider?Get a one-time lump sum payment of a portion of your death benefit if you're diagnosed with a terminal illness. That money can be used to pay for treatments and make your final days as comfortable as possible. Your beneficiaries will get any money that's left over.
What is the purpose for having an accelerated death benefit 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 an accelerated benefit rider?Q: What are accelerated benefits? A: Accelerated benefits, also known as "living benefits," are life insurance policy proceeds paid to the policyholder before he or she dies. The benefits may be provided in the policies themselves, but more often they are added by riders or attachments to new or existing policies.
What is the purpose of a death benefit?A death benefit is a payout to the beneficiary of a life insurance policy, annuity, or pension when the insured or annuitant dies. For life insurance policies, death benefits are not subject to income tax and named beneficiaries ordinarily receive the death benefit as a lump-sum payment.
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