What typically happens to the face amount of an indexed whole life insurance policy over time quizlet?
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Marketing Essentials: The Deca Connection1st EditionCarl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese 1,600 solutions C. "20-Pay Life will accumulate cash value faster." With the exception of the Endowment policy, which is always the most expensive and always builds cash values the fastest, you can simply remember this truism: The shorter the premium-paying period, the more expensive the premiums and the faster the cash value builds. Since all the policies mentioned are forms of Whole Life, reaching their maturity at age 120, the only thing different is the premium-paying period. A 20-Pay Life requires that all the premiums be paid within 20 years from the day it is purchased. A Whole Life (or Straight Life) policy requires the premiums to be paid to age 120. If Clark is now 30, the assumption is that he would have to pay premium to age 120, or 90 years. Obviously, 20-Pay Life, which would require the premiums to be paid in over three times as fast, would be much more expensive and would also build cash values much faster. D. Premiums are payable throughout the insured's lifetime, and coverage continues until the insured's death Whole Life insurance assumes that the insured will pay the premiums until death or until age 120, whichever comes first. If the insured is still alive at age 120, the policy will reach maturity and pay the insured the face amount or cash value, whichever is more. This is because the insurance company's Mortality Table states that everyone has died by their 120th birthday. An insured who would like to retire at age 65, keeping the life insurance in force but discontinuing premium payments, should consider buying an LP 65, which is a Whole Life policy with a limited payment period. Of course, the shorter the premium paying period, the higher the premium. An insured buying Straight Whole Life, which matures at age 120, could also stop paying their premiums at age 65 by selecting the Reduced Paid Up Non-forfeiture option. This would result in the insured having a new Whole Life policy paid up to age 120 with a cash value and a death benefit somewhat reduced from their original policy, but no further premiums would be due. What happens to the face amount of a whole life policy if the insured reaches the age of 100?Whole life policies are designed to mature when the insured reaches the age of 100. This means that payments would end and the cash value and face amount are equal. The face amount is paid out to the beneficiary when the insured reaches 100 years of age, even if they are still alive.
What happens to the face amount of a whole life policy if the insured reaches the age of 100 quizlet?A limited-pay whole life policy, just like straight life, endows for the face amount if the insured lives to age 100. The premium is, however, completely paid off in 20 years.
What is the face amount of a whole life policy paid quizlet?At policy maturity (age 120 for policies issued since 2009) the policy face amount is paid to the policyowner since it equals the cash value and there is no more pure insurance protection. Ordinary whole life policy owners pay the same (level) premium over the life of the policy.
What is the face amount of a whole life policy?The face value of life insurance is the dollar amount equated to the worth of your policy. It can also be referred to as the death benefit or the face amount of life insurance. In all cases, life insurance face value is the amount of money given to the beneficiary when the policy expires.
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