Lecture Todays - #17
Sample Whole Life Insurance Policy
Beneficiaries Payment of Policy Proceeds Life Insurance Riders
Section 8 - Beneficiaries
(Page 745) Succession in Interest of Beneficiaries Direct Beneficiaries Contingent Beneficiaries Further Payees Owner or his Estate
Life Insurance Example 1
John Doe names his wife Jane as a direct beneficiary and his children Jack and Jill as contingent beneficiaries. If John dies while all his beneficiaries are still alive, how are the policy proceeds split? A) Jane gets it all B) They split equally C) Jane gets 50%, Jack and Jill each get 25% D) Jack and Jill each get 50% E) None of the above
Beneficiary Provisions
Revocable or Irrevocable Uniform Simultaneous Death Act Applies when order of death is unknown Common disaster provision Requires beneficiary to survive the insured by a specified time Is not included in this policy
Life Insurance Example 2
John Doe names his wife Jane as a direct beneficiary and there are no contingent beneficiaries or further payees listed in the policy. John and Jane are involved in car accident that kills them both. John is dead when the paramedics arrive. Jane dies on the way to the hospital. The policy proceeds are paid to: A) Johns estate B) Janes C) estate The insurance company keeps the proceeds D) Johns parents E) None of the above
Section 9 - Payment of Policy Proceeds (Page 746)
Payment of Proceeds Death Proceeds Surrender Proceeds Payment Plans Interest Income Installment Income Specified Period Specified Amount
Section 9 - Payment of Policy Proceeds (Page 746)
Life Income Plans Single Life Income Chosen periods
Joint and Survivor Life Income
Life Insurance Example 3
John Doe dies on October 30, 2030. Jane has an adjusted age of 70 then. What is the minimum monthly benefit she will receive if she elects to receive payments for twenty years and then for the rest of her life? A 0 B $501 C $504 D $523 E None of the above
Life Insurance Example 4
John Doe dies on July 12, 20...