Which Nonforfeiture option does the company pay the surrender value and have no further obligations to the policy owner?
LP Riders, Provisions, Options and Exclusions
| Question | Answer |
|---|---|
| Under what nonforfeiture option does the company pay the policy’s surrender value and have no further obligations to the policyowner? | Cash surrender |
Under which Nonforfeiture option does the company pay the surrender?
Cash value surrender is the most basic nonforfeiture option that is available. In this case, you would forfeit your life insurance for the cash value that has built up in the policy. Before issuing the cash value payment to you, any outstanding loans or premiums owed would be deducted by your insurer.
Under which Nonforfeiture option does permanent life insurance continue in force with no further need for premiums?
Under which nonforfeiture option does permanent life insurance continue in force with no further need for premiums? Under the extended term insurance option, the insurer applies the cash value of the lapsed policy to buy a term insurance policy.
When a reduced paid up Nonforfeiture option is chosen what happens to the face amount of the policy quizlet?
a) The insurer may terminate the contract only at renewal for certain conditions. until the insured reaches age 65. When a reduced-paid up nonforfeiture option is chosen, what happens to the face amount of the policy? a) It is reduced to the amount of what the cash value would buy as a single premium.
What is lapsed without surrender value?
A life insurance policy will lapse when premium payments are missed and cash surrender value is exhausted on a life insurance policy. The term lapse refers to a “lapse in coverage”, meaning the life insurance contract will no longer pay a death benefit or provide any insurance coverage for the insured person.
What is the maximum amount of time most states allow insurers to delay paying cash surrender values?
What is the maximum amount of time most states allow insurers to delay paying cash surrender values? Most states allow insurers to delay paying the cash surrender value for up to six months. However, few companies wait this long to pay.
Which is the following is true about nonforfeiture values?
which of the following is TRUE about nonforfeiture values? 1. policyowners do not have the authority to decide how to exercise nonforfeiture values 2. they are required by state law to be included in the policy 3. they are optional provisions 4. table showing nonforfeiture values for the next 10 years must be included in the policy
How does cash surrender work in life insurance?
4. cash surrender cash surrender when a life insurance was issued, the policyowner designated a primary and a contingent beneficiary. several years later, both the insured and the primary died in the same car accident, and it was impossible to determine who died first. which of the following would receive the death benefit? 1. insured’s estate
What are the benefits of choosing extended term as a nonforfeiture option?
what is the benefit of choosing extended term as a nonforfeiture option? 1. it can be converted to a fixed annuity 2. it has the highest amount of insurance protection 3. it matures at age 100 4. it allows for coverage to continue beyond maturity date
What happens when the cash value of an insurance policy is reduced?
1. the policy will terminate when the cash value is reduced to nothing 2. the face amount of the policy will be reduced by the automatic premium loan amount 3. the cash value will continue to increase 4. the insurer will increase the premium amount the policy will terminate when the cash value is reduced to nothing
