What kind of insurance policy pays a specific monthly income to a beneficiary for 30 years and then pays a lump sum benefit at the end of the 30 years?

What kind of insurance policy pays a specific monthly income to a beneficiary for 30 years and then pays a lump sum benefit at the end of the 30 years?

A term life insurance policy is the simplest, purest form of life insurance: You pay a premium for a period of time – typically between 10 and 30 years – and if you die during that time a cash benefit is paid to your family (or anyone else you name as your beneficiary).

What kind of life insurance policy pays a specified monthly?

In a term policy, it’s defined as a specific number of years, such as 10, 20, or 30. A permanent policy lasts for the life of the insured, for whole life as long as premiums are paid, and for universal life as long as the policy is funded properly to pay monthly expenses.

Which type of life insurance policy pays the face amount at the end of the specified period?

A type of life insurance policy which provides for the payment of the face amount at the end of the specified period if the insured is still alive is an endowment policy.) 13.

What is a modified endowment contract in insurance?

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 kind of life policy either pays the face?

Endowment insurance provides for the payment of the face amount to your beneficiary if death occurs within a specific period of time such as twenty years, or, if at the end of the specific period you are still alive, for the payment of the face amount to you.

What type of life insurance incorporates flexible premiums?

What type of life insurance incorporates flexible premiums and an adjustable death benefit? Universal Life is designed to provide flexible premiums and an adjustable death benefit.

What kind of life insurance policy pays a specified monthly income to a beneficiary for 30 years?

What kind of life insurance policy pays a specified monthly income to beneficiary for 30 years and then pays a lump sum benefit at the end of the 30 years? S is covered by a whole life policy.

When is the face amount of a whole policy paid?

The face amount of a Whole Life policy will be paid when the insured dies or on maturity of the policy, whichever occurs first.

What is the difference between whole and universal life?

Whole life and universal life insurance are both types of permanent life insurance. Whole life insurance offers consistent premiums and guaranteed cash value accumulation, while a universal policy provides flexible premiums and death benefits.

Which policy feature makes a universal life policy?

The policy feature that makes universal life different from whole life insurance policies is its flexible premium schedule. A Modified Endowment Contract (MEC) can be described as a life insurance contract that has accumulated cash values higher than the IRS allows.

When does a term life insurance policy mature?

*upon the insured’s death during the term of the policy (Term life policies can only mature (pay out the face amount) if death occurs during the term of the policy.) Life insurance that covers an insured’s whole life with level premiums paid over a limited time is called

What is the difference between term and limited pay life insurance?

(Term life policies can only mature (pay out the face amount) if death occurs during the term of the policy.) Life insurance that covers an insured’s whole life with level premiums paid over a limited time is called Limited Pay Life

What is a payor Benefit Clause in life insurance?

*Child (A payor benefit clause is generally added to a life policy that insures the life of a juvenile. It provides continuance of insurance coverage in the event of the death or total disability of the individual responsible for the payment of premiums.)

What is a family income policy conversion?

Conversion A Family Income Policy is a combination of Whole Life and Decreasing Term insurance Whose life is covered on a life insurance policy that contains a payor benefit clause? *Child (A payor benefit clause is generally added to a life policy that insures the life of a juvenile.